You Want to Earn a 12% Rate of Return

question 274

Multiple Choice

You want to earn a 12% rate of return. Panco, Inc. preferred stock pays a $4.50 annual dividend. What is the maximum price you are willing to pay for one share of this stock?

• A) $32.50
• B) $37.50
• C) $39.00
• D) $40.50
• E) $45.00

---

Definitions:

Engaged

refers to being actively involved or interested in a task or activity.

Physical Presence

Being physically located in a particular place or environment, as opposed to being there virtually or in thought only.

Performance Criteria

are standards or metrics used to evaluate the effectiveness or success of an activity or individual's work.

Evaluating

The process of judging or calculating the quality, importance, amount, or value of something.