What Is the Rate of Return on a Preferred Stock

question 61

Multiple Choice

What is the rate of return on a preferred stock that has a par value of $50, a market price of $46.50, and a dividend of $4.10?

• A) 8.20%
• B) 11.34%
• C) 8.82%
• D) 12.20%

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Definitions:

Napoleon

A French military leader and emperor in the early 19th century, known for his significant impact on European politics and warfare.

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Compulsory financial charges levied by a government on individuals and organizations to fund public expenditures, including infrastructure, services, and security.

Congress of the Confederation

The governing body of the United States under the Articles of Confederation, consisting of representatives from each state and possessing limited powers.

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Territorial disputes and claims in the Northwestern territories of the United States, primarily during the late 18th and early 19th centuries, involving land rights and settlement.