Department 65 Has an Issue of Preferred Stock That Pays

question 73

Multiple Choice

Department 65 has an issue of preferred stock that pays a dividend of $4.00.The preferred stockholders require a rate of return on this stock of 9%.At what price should the preferred stock sell for? Round off to the nearest $0.10.

• A) $36.00
• B) $44.40
• C) $62.50
• D) $88.80

---

Definitions:

Reticular Activating System

A network of neurons in the brainstem that plays a key role in regulating wakefulness and sleep-wake transitions.

Cerebral Cortex

The outer layer of the cerebrum composed of gray matter and consisting mainly of nerve cell bodies.

Alpha Rhythm

A pattern of smooth, regular electrical oscillations in the human brain typically occurring when a person is awake but relaxed, usually in the frequency range of 8-12 Hz.

Theta Rhythm

A pattern of brainwave activity, typically in the range of 4-8 Hz, associated with stages of sleep and meditative states.