Preferred Stock: accounting help!!?!?

Question

Preferred stock 6% at 200 per share
what does this mean??

Answer 1

It means that the preferred stockholder will get his dividend at 6% per year, i.e. $12 per share, before the common stockholder can get any dividend. If this is a cumulative preferred stock, it means that if the co. doesn't pay out the $12 per share in any year, there will be dividends in arrears and in future, the co. will have to make good these arrears before the common stockholders get their dividends. Pls read the lecture at the link. It'll help you.

Answer 2

The preferred stock pays a dividend of 6% at the market rate of 200 per share.

Answer 3

It means if you buy this preferred stock, you will receive 6% of a 200$ fair price per year. The price may change, but you will receive always this interest which is 12$ per year. Before buying a preferred stock get information on restriction and the company right to convert it in cash.