If a $100 Par Value Preferred Stock Pays an Annual

question 19

Multiple Choice

If a $100 par value preferred stock pays an annual dividend of $5 and comparable yields are 10 percent, the price of this preferred stock will be

• A)$100
• B)$75
• C)$50
• D)$25

---

Definitions:

Basement Membrane

A thin, dense layer of extracellular matrix that underlies the epithelium and separates it from underlying tissue.

Epithelium

A layer of cells covering the body surfaces and lining internal organs and various glands, serving protective, sensory, and absorptive functions.

Dense Connective Tissue

A type of connective tissue with high tensile strength, composed mainly of collagen fibers, providing support and protection to various body structures.

Cartilage

A flexible, connective tissue found in various forms in the vertebrate body, including joints, rib cage, ear, nose, and throat, providing support and facilitating movement.