Slater Lamp Manufacturing has an outstanding issue of preferred stock with an $80 par value and 11% annual dividend. What is the annual dollar dividend? If it is paid quarterly, how much will be paid each quarter?

Slater Lamp Manufacturing has an outstanding issue of preferred stock with an $80 par value and an 11% annual dividend.

a. What is the annual dollar dividend? If it is paid quarterly, how much will be paid each quarter?
b. If the preferred stock is noncumulative and the board of directors has passed the preferred dividend for the last 3 quarters, how much must be paid to preferred stockholders in the current quarter before dividends are paid to common stockholders?
c. If the preferred stock is cumulative and the board of directors has passed the preferred stockholders in the current quarter before dividends are paid to common stockholders?

To calculate the annual dollar dividend, we need to multiply the par value of the preferred stock by the annual dividend rate.

Step 1: Multiply the par value ($80) by the annual dividend rate (11%).

$80 * 0.11 = $8.80

The annual dollar dividend is $8.80.

To calculate the quarterly dividend, we need to divide the annual dividend by the number of quarters in a year (4).

Step 2: Divide the annual dollar dividend ($8.80) by the number of quarters (4).

$8.80 / 4 = $2.20

Each quarter, $2.20 will be paid as a dividend for the preferred stock.