What Is the Dividend on an 8 Percent Preferred Stock

question 102

Multiple Choice

What is the dividend on an 8 percent preferred stock that currently sells for $45 and has a face value of $50 per share?

• A) $3.33
• B) $3.60
• C) $4.00
• D) $5.00

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Definitions:

Grandstanding

Engaging in behavior or making statements intended to attract positive attention and impress others.

Marginal Benefit

The added contentment or utility derived from utilizing or producing an extra item of a good or service.

Vote Trading

An arrangement where individuals agree to vote for each other's preferred choice in different decisions or elections, aimed at maximizing the fulfillment of each party's preferences.

Public Project

A project that is initiated and funded by the government aimed at delivering public goods or benefits to the community.