If a Preferred Stock from Ecology and Environment, Inc

question 32

Multiple Choice

If a preferred stock from Ecology and Environment, Inc. (EEI) pays $2.50 in annual dividends, and the required return on the preferred stock is 5.8 percent, what's the value of the stock?

• A) $0.15
• B) $0.43
• C) $14.50
• D) $43.10

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Definitions:

Checks and Balances

A system in which different branches of government have powers that can limit or check the powers of the others, thus ensuring no single branch becomes too powerful.

Two-Thirds Vote

A decision-making process requiring the approval of two-thirds of the members present and voting in a legislative body or other organization.

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These are legislative bodies in each of the United States responsible for making state laws.

Bill of Rights

The first ten amendments to the United States Constitution, ratified in 1791, guaranteeing such rights as the freedoms of speech, assembly, and worship.