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Fixed Rate Cumulative Preferred Stock


A cumulative preferred stock that pays out a fixed dividend. In other words, the stock pays its dividends based on a fixed dividend rate as per the following formula:

Dividend payment = (number of preferred shares) x (par value per share) x (fixed dividend rate)

The fixed dividend rate is multiplied by the number of preferred shares and the par value per share in order to reach at the dividend payment.



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