Determine the Required Rate of Return on Preferred Shares That

question 20

Multiple Choice

Determine the required rate of return on preferred shares that provide a $10 annual dividend if they are selling for $60?

• A)17.14%
• B)16.66%
• C)15.66%
• D)18.14%

---

Definitions:

National Saving

The total amount of savings generated within a country, consisting of both private savings by households and public savings by the government.

Trillion

A numerical value represented as 1,000,000,000,000, or 10^12, often used in the context of discussing national budgets or macroeconomic figures.

Private Saving

The amount of income left after individuals have paid taxes and consumed goods and services, which can be used for investment or lending.

Public Saving

The portion of a government's budget that is left after accounting for all its spending, essentially the government budget surplus.