Question

Pine Valley Lumber issues 15,000 shares of 9%, $45 par value preferred stock with a cumulative dividend feature for $65 cash per share. What is the minimum annual dividend the holders of this stock can collectively expect to receive

Answer 1

The minimum annual dividend the holders of this stock can collectively expect to receive is $60,750.

Minimum annual dividend

Using this formula

Minimum annual dividend=Number of shares×par value preferred stock×Dividend rate

Let plug in the formula

Minimum annual dividend=15,000 shares × $45/share par value × 9%

Minimum annual dividend=$60,750

Therefore the minimum annual dividend the holders of this stock can collectively expect to receive is $60,750.

Learn more about Minimum annual dividend here:https://brainly.com/question/19424887

#SPJ1