If the Required Rate of Return Is Higher Than the Dividend

question 61

Multiple Choice

If the required rate of return is higher than the dividend rate of a preferred share, the par value is _________________ the current market value of the preferred share.

• A)equal to
• B)higher than
• C)less than
• D)independent of

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Definitions:

Evolutionary Process

The natural phenomenon by which biological organisms change over time through changes in genetic composition and inherited traits.

Socialization

The process by which individuals learn and internalize the norms, values, behaviors, and social skills appropriate to their society.

Self-fulfilling Prophecy

A situation where a belief or expectation, whether correct or false, affects a person's behavior in such a way that it contributes to the belief becoming true.

Continuous Connectivity

The state of being constantly connected to the internet or communication networks, often via smartphones or other digital devices.