A Preferred Stock from DLC Pays $5

question 108

Multiple Choice

A preferred stock from DLC pays $5.10 in annual dividends. If the required return on the preferred stock is 12.1 percent, what is the value of the stock?

• A) $6.31
• B) $42.15
• C) $47.25
• D) $240.97

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Definitions:

Legal and Institutional Change

Modifications made within laws and organizational structures aimed at reforming or improving systems for better societal outcomes.

William Julius Wilson

An influential American sociologist known for his research and writing on race, class, and inequality in the United States.

Antidiscrimination Laws

Legislation designed to prevent discrimination on the basis of race, gender, religion, national origin, physical disability, or other protected characteristics.

Affirmative Action

Policies and practices designed to increase opportunities for historically underrepresented groups in various areas of society, including education and employment.