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:

Ileocecal Valve

A valve located between the ileum (last portion of the small intestine) and the cecum (first part of the large intestine) that controls the flow of digested food.

Pyloric Sphincter

A muscular valve regulating the flow of food from the stomach to the duodenum of the small intestine.

Anal Sphincter

A circular muscle that surrounds the anus, controlling the passage of feces out of the body through the anal opening.

Salivary Glands

Glands located in the mouth that produce saliva, aiding in digestion and keeping the mouth moist.