If 700 Preferred Shares with a Par Value of $35/share,a

question 106

Multiple Choice

If 700 preferred shares with a par value of $35/share,a dividend rate of 5% and redeemable for $50/share,are sold for $45/share how much dividend may the preferred equity holders expect to receive?

• A) $525
• B) $1,225
• C) $1,575
• D) $1,750