$12$

Salmon, Incorporated issues $502,000$ shares of preferred stock for $$32$ a share. The stock has a fixed annual dividend rate of $7\%$ and a par value of $$11$ per share. The current price of the preferred stock is $$34$ a share. If sufficient dividends are declared, preferred stockholders can anticipate receiving annual dividends of:

$0\mathrm{.}86$

points

References

Multiple Choice

$$0\mathrm{.}77$ per share.

$$2\mathrm{.}24$ per share.

$$2\mathrm{.}38$ per share.

$$1\mathrm{.}47$ per share.