SIE Exam Question 781: Answer and Explanation

Question: 781

An investor who owns 5% cumulative preferred stock will receive a semiannual dividend of:

• A. $0.25 per share.
• B. $0.50 per share.
• C. $2.50 per share.
• D. $5.00 per share.

Correct Answer: C

Explanation:

An investor who owns 5% cumulative preferred stock will receive a semiannual dividend of $2.50 per share.