a preferred stock paying 9.7% on $125 par value equals what? move decimal two places to right. thank you
To calculate the annual dividend payment on a preferred stock, you need to multiply the dividend rate (percentage) by the par value of the stock. In this case, the dividend rate is 9.7% and the par value is $125.
To convert the dividend rate from a percentage to a decimal, move the decimal point two places to the left. In this case, 9.7% becomes 0.097.
To find the annual dividend payment, multiply the dividend rate by the par value:
Annual Dividend = Dividend Rate x Par Value
Annual Dividend = 0.097 x $125 = $12.125
Therefore, the preferred stock paying 9.7% on a $125 par value would equal an annual dividend payment of $12.125.