A 5.5% preferred stock with a par value of $100 would pay someone owning 300 shares what amount?

To determine the amount someone owning 300 shares of a preferred stock pays, first, it's important to understand how preferred stock dividends work. Preferred stock typically has a fixed dividend rate, which is a percentage of its par value. In this scenario, the preferred stock has a par value of $100 and a dividend rate of 5.5%.

To find the dividend for one share, you would calculate 5.5% of the par value, which is:

5.5% of $100 = 0.055 x $100 = $5.50.

Now, to find out the total dividend payment for 300 shares, you multiply the dividend per share by the number of shares:

$5.50 per share x 300 shares = $1,650.

Thus, the payment received by someone owning 300 shares of the preferred stock amounts to $1,650. This illustrates the mechanics behind preferred stock dividends and the multiplication of the dividend per share by the total number of shares owned.