What Is the Dividend on an 8 Percent Preferred Stock

question 94

Multiple Choice

What is the dividend on an 8 percent preferred stock that currently sells for $45 and has a face value of $50 per share?

• A) $5.00
• B) $4.00
• C) $3.60
• D) $3.33

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Definitions:

Indifference Curves

Graphical representations in microeconomics illustrating combinations of goods between which a consumer is indifferent.

Bundles

Groups of goods or services sold together as a single package.

Strong Axiom

A stringent condition in economics that, when applied, implies a level of consistency in consumer choice behavior beyond what is required by weaker axioms.

Revealed Preference

A theory suggesting consumers' preferences can be inferred from their purchasing habits.