Calculation of preferred dividend does not depend upon the dividend declared at the end of the year. Preferred dividend is fixed and is calculated using the fixed percentage of preferred dividend. For example a company has 1000 shares of 6 preferred stock outstanding, each with par value of $100. 6 mentioned before preferred stock is the dividend rate(6%) to be received by preferred shares. Preferred Dividend = No. of preffered shares outstanding x Par value of each share x Dividend rate. = 1000 x 100 x 6%. = $ 6000. Dividend per share = 6000/1000 = $6
If a corporation has outstanding 1000 share of 8 preferred share and 100 for 3 years, the preferred dividend before dividend declaration is 50.
The total yearly dividend payable to preferred stock is 96000.
Im in 5th so if i get it wrong...sorry. the answer is there are cuase yet is also prefrred by teachers but...."but" is not and can not always fit in senteces.