Value of a Preferred Stock If a Preferred Stock from Ecology

question 76

Multiple Choice

Value of a Preferred Stock If a preferred stock from Ecology and Environment,Inc.(EEI) pays $2.50 in annual dividends,and the required return on the preferred stock is 5.8 percent,what's the value of the stock?

• A)$0.15
• B)$0.43
• C)$14.50
• D)$43.10

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Definitions:

Lymphocytes

A type of white blood cell that is an essential component of the immune system, helping the body to fight infections and diseases.

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for physical activity by accelerating heart rate, constricting blood vessels, and raising blood pressure.

Type A Individuals

Persons characterized by a competitive, aggressive, and highly organized approach to life, often associated with a higher risk of heart disease.

Cholesterol

A type of lipid molecule that is essential for building cell membranes and synthesizing certain hormones, but high levels can increase the risk of heart disease.