Lithium Lakes Industries Preferred Stock Has a Par Value of $100

question 69

Multiple Choice

Lithium Lakes Industries preferred stock has a par value of $100 and pays a dividend of $6.00 per share.It presently sells for $87 per share.What do investors require as a rate of return on this stock? Round off to the nearest .10%.

• A) 14.5%
• B) 9.3%
• C) 6.9%
• D) 6.0%

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Definitions:

Recall

A process in memory that involves the retrieval of information previously learned or experienced.

Encoding

The initial stage of memory formation where perceived inputs are transformed into a format that can be stored in the brain.

Recognition Memory

is the ability to identify previously encountered events, objects, or people.

Recall Memory

The cognitive process of retrieving information from the past, which has been previously encoded and stored in the brain.