If Genco's Preferred Stock Pays a Dividend of $5 Per

question 67

Multiple Choice

If Genco's preferred stock pays a dividend of $5 per share and its investors require an 8% return,what should its price per share of preferred stock be?

• A) $50.00
• B) $.40
• C) $62.50
• D) $6.25
• E) $12.75

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Definitions:

Equitable Remedy

A judicial order enforcing a party to act or refrain from acting in a certain way, used when monetary compensation does not suffice to resolve a legal dispute.

Frustration Clause

A frustration clause in a contract is a provision that releases both parties from their obligations if an unforeseeable event occurs, making it impossible to fulfill the contract.

Tomato Crop

Refers to the cultivation and production of tomatoes as an agricultural activity.

Epidemic

A widespread occurrence of an infectious disease in a community at a particular time, affecting a large number of people.