Question
Dusty Corporation has an issue of preferred stock that pays a dividend of 7 percent of its state value, which is $100. Which of the following would be a commonly used name for that preferred stock?
Multiple choice question.
7% preferred
Preferred stock that pays 7% of its stated value.
$7 preferred
$100 preferred
Multiple choice question.
7% preferred
Preferred stock that pays 7% of its stated value.
$7 preferred
$100 preferred
Answers
GPT-4o mini
The commonly used name for the preferred stock that pays a dividend of 7 percent of its stated value of $100 would be **$7 preferred**. This terminology reflects the annual dividend payment (which is $7, or 7% of $100) associated with the preferred stock.