Preferred Stock of Ford Motors Pays a Dividend of $2

question 41

Multiple Choice

Preferred stock of Ford Motors pays a dividend of $2.5 each year and trades at a price of $25.What is the cost of preferred stock capital for Ford?

• A)8%
• B)9%
• C)10%
• D)11%

---

Definitions:

Like Terms

Algebraic terms that have the same variable parts and powers.

Collect

Refers to gathering or bringing things together from multiple sources.

Like Terms

Terms in an algebraic expression that have the same variables raised to the same power, which can be combined or simplified.

Operation Indicated

The process of performing the mathematical operation (such as addition, subtraction, multiplication, or division) as specified by the given problem.