Your Required Rate of Return on Company XYZ's Preferred Stock

question 39

Multiple Choice

Your required rate of return on company XYZ's preferred stock is 12%.Their preferred stock pays a fixed annual dividend of $4.A share of XYZ preferred is valued at

• A)$4.80.
• B)$33.34.
• C)$48.00.
• D)$54.44.

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Definitions:

Punishment

The introduction of a consequence in response to a behavior with the intent to decrease the likelihood of that behavior occurring in the future.

Suppressive Influence

The impact or effect that reduces, inhibits, or diminishes a particular response, activity, or expression.

Mowrer

A psychologist known for his two-factor theory of avoidance learning, which combines classical and operant conditioning theories to explain how anxiety and phobias are learned and maintained.

First Stage Avoidance

First stage avoidance in classical conditioning is where the organism learns to avoid an aversive stimulus by responding appropriately to a warning signal.