A Company Issues 500,000 Shares of Preferred Stock for $30

Multiple Choice

A company issues 500,000 shares of preferred stock for $30 a share.The stock has a fixed annual dividend rate of 5% and a par value of $9 per share.The current price of the preferred stock is $32 a share.If sufficient dividends are declared,preferred stockholders can anticipate receiving annual dividends of:

A) $0.45 per share.
B) $1.50 per share.
C) $1.60 per share.
D) $1.05 per share.