Alpine Ski Equipment Has 2 Million Preferred Shares Issued at a Par

question 25

Multiple Choice

Alpine Ski Equipment has 2 million preferred shares issued at a par value of $40.The preferred shares are currently selling at $33.25 per share and the required rate is 8.42 percent.What is the dividend rate?

• A) 7.00%
• B) 8.42%
• C) 9.00%
• D) 10.13%

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