A Firm Has Issued $5 Par Value Preferred Stock That

question 47

Multiple Choice

A firm has issued $5 par value preferred stock that pays a $0.80 annual dividend. The stock currently sells for $9.50. In calculating a WACC, what would be the value of the firm's preferred stock?

• A) $0.80
• B) $4.50
• C) $5.00
• D) $9.50

---

Definitions:

Deviant Behavior

Acts that diverge from accepted social standards and norms.

American Dream

The belief that everyone in the United States has the chance to be successful and happy if they work hard.

Violent Crime

Criminal activities that involve the use of force or threat of force against others.

Property Crime

Crimes involving the theft of property without direct harm to the victim, such as burglary, larceny, theft, motor vehicle theft, and arson.