The Preference Shares of ABC Plc Offers an 8

question 18

Multiple Choice

The preference shares of ABC plc offers an 8.4% rate of return.The shares are currently priced at £50.00.What is the amount of the annual dividend?

• A)£2.10
• B)£4.20
• C)£5.00
• D)£6.40
• E)£8.60

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Definitions:

Distribution

The manner in which a statistical data or a population is spread out or arranged over a range of values.

Empirical Rules

Practical guidelines based on observed data which are used to interpret statistical distributions, notably the 68-95-99.7 (or three-sigma) rule for normal distributions.

Standard Deviations

A measure of the amount of variation or dispersion in a set of values, often used to quantify the spread of a probability distribution.

Observations

Observations refer to the act of watching or noticing something or the data collected during this process, usually as part of a study or experiment.