Question

Thomas owns Gaz Metropolitain preferred stock. If this preferred stock pays 7.00 percent based on a par value of $25, what is the dollat amount of the dividend for one share of Gaz Metropolitain? (Round your answer to 2 decimal places.

Answer 1

The dollar amount of the dividend for one share of Gaz Metropolitain preferred stock, which pays 7.00 percent based on a par value of $25, is $1.75.

Step-by-step explanation:

To calculate the dollar amount of the dividend for one share of Gaz Metropolitain preferred stock that pays 7.00 percent based on a par value of $25, we use the following formula:

Dividend per share = (Par Value) × (Dividend Rate)

Therefore:

Dividend per share = $25 × 0.07 = $1.75

After calculating, we find that the dollar amount of the dividend for one share of Gaz Metropolitain preferred stock is $1.75.