If a preferred stock has a par value of $50 and pays an 8.25% dividend, what is the annual dividend?

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To determine the annual dividend for preferred stock, you need to calculate it based on the par value and the dividend percentage. The par value of the stock is $50, and the dividend rate is 8.25%.

The formula to calculate the annual dividend is:

Annual Dividend = Par Value × Dividend Rate

Substituting the given values:

Annual Dividend = $50 × 0.0825 = $4.125

This calculation shows that the annual dividend for the preferred stock is $4.125. This amount represents the income that a holder of the preferred stock would receive each year, based on the dividend rate applied to the par value of the stock.

The other options are variations that do not accurately reflect the calculation based on the provided par value and dividend rate.