If 700 Preferred Shares with a Benchmark Value of $35/share

question 59

Multiple Choice

If 700 preferred shares with a benchmark value of $35/share, a dividend rate of 5% and redeemable for $50/share, are sold for $45/share how much dividend may the preferred equity holders expect to receive?

• A)$525
• B)$1,225
• C)$1,575
• D)$1,750

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Definitions:

Invention

The conception of a new product or process combined with the first proof that it will work.

Diffusion

The spread of an innovation through its widespread imitation.

Technological Advance

(1) An improvement in the quality of existing products, the invention of entirely new products, or the creation of new or better ways of producing or distributing products. (2) Any improvement in the methods by which resources are combined such that the same quantity of inputs can be made to yield a combination of outputs that is preferred to any combination of outputs that was previously possible.

Distributing

The process of making goods or services available to consumers, often through various channels.