Preferred Dividend formula = Par value * Rate of Dividend * Number of Preferred Stocks.   can u explain this formula in more detail and provide an example?

Personal Finance
13th Edition
ISBN:9781337669214
Author:GARMAN
Publisher:GARMAN
Chapter14: Investing In Stocks And Bonds
Section14.2: How To Evaluate Common Stocks
Problem 1CC
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  1. Preferred Dividend formula = Par value * Rate of Dividend * Number of Preferred Stocks.

 

can u explain this formula in more detail and provide an example?

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