Preference Shares of Dunmovin Pay a Dividend of $4 Each

question 89

Multiple Choice

Preference shares of Dunmovin pay a dividend of $4 each year and trade at a price of $30. What is the cost of preference share capital for Dunmovin?

• A) 15.5%
• B) 13.3%
• C) 16.2%
• D) 14.5%

---

Definitions:

Legality/Illegality

Pertains to whether something is lawful and permitted or unlawful and forbidden under legal statutes.

Strike Replacements

Workers who are hired by an employer to perform the job duties of striking employees during a labor strike.

Rights Disputes

Conflicts arising from the interpretation, application, or violation of contracts, laws, or agreements.

Contract Language

The specific wording and terminology used within a contract that outlines the rights, obligations, and agreements between parties.