A Share of Preferred Stock Currently Sells for $120

question 361

Multiple Choice

A share of preferred stock currently sells for $120. It offers the investor a dividend rate of 8%, on a par value of $100. If the investor owns 500 shares, her total annual dividend will equal:

• A) $800
• B) $8.00
• C) $2,000
• D) $4,000

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Definitions:

Pluralist Theory

A theory of politics and policy-making that emphasizes the role of diverse, competing interest groups in shaping public policy.

Public Good

Describes a commodity or service that is provided without profit to all members of a society, either by the government or a private individual or organization.

Competing Interests

Situations where different groups or individuals have opposing objectives, often leading to conflict or negotiation.

Direct Marketing

A form of advertising that allows businesses to communicate straight to the customer, often through a variety of channels.