How Much Would You Be Willing to Pay for a Preferred

question 89

Multiple Choice

How much would you be willing to pay for a preferred stock that pays $6.50 to perpetuity if the appropriate discount rate is 9%?

• A)$65.00
• B)$72.22
• C)$81.25
• D)$722.20

---

Definitions:

Social-learning Theory

A theory which posits that people learn new behaviors through observing and imitating others, alongside direct reinforcement.

Cognitive Dissonance Theory

A theory that explains the feelings of discomfort that result from holding two conflicting beliefs.

Freud's Theory

A set of psychoanalytic theories developed by Sigmund Freud that emphasize unconscious processes, sexual and aggressive instincts, and early childhood experiences.

James-Lange Theory

A theory of emotion suggesting that physiological arousal precedes and causes the emotional experience, meaning emotions result from the interpretation of bodily reactions to stimuli.