Can you please help me figure out how to do this calculation? I can't figure it out. I know the 6% is the dividend for the year, but I don't understand the $80 and the $85 that it was issued for. Thank you!
The annual per share dividend requirement of a 6%, $80 par value preferred stock that was issued for $85 is:
a. $4.80
b. $5.10
c. $6.00
d. $8.00