If the Required Rate of Return Is Higher Than the Dividend

question 61

Multiple Choice

If the required rate of return is higher than the dividend rate of a preferred share, the par value is _________________ the current market value of the preferred share.

• A)equal to
• B)higher than
• C)less than
• D)independent of

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Definitions:

Self-Transcendence

A trait dealing with the expansion of personal boundaries, including experiencing spiritual aspects and unifying with other people and the world.

Self-Enhancement

The motivation or tendency to view oneself favorably and to seek positive feedback, often by emphasizing one’s strengths and minimizing weaknesses.

Deconstructionism

A philosophy that argues reality does not exist apart from human perceptions, or constructions, of it.

Existentialism

A philosophical theory or approach that emphasizes individual freedom, choice, and responsibility, asserting the creation of one's values and meaning in life.