Simple ? on preferred equity calculations

If someone invests $100 of preferred and it accrues at 10% each year, does the 10% always accrue off of the new amount (i.e., for year 2, 10% multiplied by $100 + $10) or is it always just adding $10 each year (and based off of the initial $100 amount)?

6,196 WSO Academy Investment Banking Session Reviews: 4.82/5

Class of '24 Aug 2025 Cohort

5.00/5

Investment Banking Short Resume Review / Recap

“John is very kind and pleasant to talk with. He makes the student feel very at ease and encourages them to ask questions and to not hesitate if there is anything else he can help with, even if it is not directly related to the purpose of the scheduled session. He is very knowledgeable, communicates very well, gives clear actionable takeaways, and is very easy to schedule. ”

Southern Illinois University at Edwardsville

Class of '20 Jul 2026 Cohort

5.00/5

Investment Banking Mock Interview

“Julius has continued to go above and beyond each time I have a session with him. I have had 20+ sessions since joining the Academy and he is always willing to push your knowledge, put you in situation where you feel pressure and provides a calmness and will help you think through the situation. Like for today's mock he had built out a modeling test (LBO), something I had never done before, he pushes your knowledge while working through it and then provides great explanations on anything you may have missed at the end. I feel like he's provided me with the most valuable feedback and continues to will help anyone who is hungry to learn and expand their knowledge. Truley a great mentor!”

See All 11,446 WSO Academy Reviews

1 Comments

apollotime

IB

4y

Magnam ea similique asperiores sed ut eos optio. Iure impedit aut eum deleniti. Soluta similique sit necessitatibus in itaque blanditiis. Aut ab quis dolorum.

Autem delectus facere qui qui rerum pariatur. Aut autem nostrum excepturi velit dicta temporibus alias non. Amet tenetur adipisci magnam beatae non. Quia autem quaerat debitis minima quia necessitatibus rerum. Possimus iste ut tempore quibusdam.

Ratione deleniti a est aliquid. Laborum et vel aut et et consequatur. Nesciunt illo qui natus beatae est. Dolores consequatur alias voluptatem laborum qui nesciunt doloribus. Voluptas optio unde iusto incidunt nostrum quo est.

+154	UBS Tech layoff	52	4h
+143	UBS’s M&A BANKERS ARE DOING TERRIBLY. $200M EXTRA IS BEING CUT	29	4h
+139	Do people still want to go PE?	40	5h
+86	Analyst: Why is UBS IB doing worse than peers?, UBS CFO: No Comment	18	2m
+57	How do YOU manage networking requests?	16	4h
+42	Are target prospects getting dumber?	18	2h
+37	What Differentiates the Best Analysts as AI Improves?	9	3d
+36	Quitting After First 4 months	12	10h
+34	MBB Pay Raises	26	10h
+33	Cornell Club T10 Rankings (UPDATED 10/2026)	19	1d

1	redever	99.2
2	kanon	99.0
3	Secyh62	99.0
4	BankonBanking	99.0
5	CompBanker	98.9
6	Betsy Massar	98.9
7	dosk17	98.9
8	GameTheory	98.9
9	DrApeman	98.9
10	Kenny_Powers_CFA	98.8

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

Simple ? on preferred equity calculations

Score Breakdown

Feedback

Score Breakdown

Feedback

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

Simple ? on preferred equity calculations

See All Comments - 100% Free

Trending Content - Investment Banking Forum