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%

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Definitions:

Psychological Contract

The unwritten, implicit expectations and beliefs about the reciprocal obligations between employees and employers, impacting job satisfaction and loyalty.

Bicultural Audit

An assessment process that evaluates the integration, respect, and representation of two distinct cultures within an organization or community.

Due Diligence

The comprehensive appraisal of a business or investment opportunity to assess its value and uncover any potential liabilities or risks.

Attraction-Selection-Attrition (ASA) Theory

A theory suggesting that organizations attract and select individuals with similar personalities and lose those who are less similar, thereby becoming more homogeneous over time.