Preferred Stock of Ford Motors Pays a Dividend of $3

question 12

Multiple Choice

Preferred stock of Ford Motors pays a dividend of $3.5 each year and trades at a price of $25.What is the cost of preferred stock capital for Ford?

• A)12.6%
• B)14.0%
• C)13.5%
• D)12.8%

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Definitions:

Stereoscopic Vision

The ability to perceive depth and three-dimensional structure from visual information captured by both eyes.

Primates

An order of mammals that includes humans, apes, monkeys, and prosimians, characterized by large brains, forward-facing eyes, and opposable thumbs.

Homo Heidelbergensis

Early humans living from about 600,000 to 300,000 years ago; some scientists believe that fossils classified as Homo antecessor should be included in Homo heidelbergensis.

H. Antecessor

An extinct human species or subspecies from the Early Pleistocene of Europe, considered one of the early ancestors of modern humans.