Southern Utilities Just Issued Some New Preferred Stock

question 70

Multiple Choice

Southern Utilities just issued some new preferred stock.The issue will pay a $19 annual dividend in perpetuity beginning 9 years from now.What is one share of this stock worth today if the market requires a 7 percent return on this investment?

• A)$157.97
• B)$164.16
• C)$189.08
• D)$241.41
• E)$271.43

Evaluate personal opportunity costs in consumer purchases.

Know the legal resources available to consumers including small claims court and class-action suits.

Differentiate between mediation, arbitration, and other conflict resolution methods.

Identify reputable organizations and their roles in consumer product safety and quality assurance.

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Definitions:

Stock Exchange Requirements

Stock exchange requirements refer to the set of rules and standards that companies must meet and maintain to have their shares listed and traded on a particular stock exchange.

Reverse Stock Split

A corporate action in which a company reduces the number of its existing shares to increase the share price without changing the company's valuation.

Stock Repurchase

A situation where a company buys back its own shares from the marketplace, potentially increasing the value of remaining shares.

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout.