A Share of 6% Preferred Stock Has a Par Value

question 121

Multiple Choice

A share of 6% preferred stock has a par value of $100 and market value of $120. The owners of the preferred stock will receive a dividend of:

• A)$100.
• B)$12.
• C)$6.
• D)$10.

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Definitions:

Pay Secrecy

Policies or practices that discourage or prohibit employees from discussing their salaries with co-workers.

Wage and Salary Administration

The process of organizing and managing employee compensation based on job roles, experience, and performance.

Pay Inversion

A situation where a more junior employee ends up making more money than their more senior counterparts, often due to market rate changes or hiring practices.

Pay Compression

A situation where there is only a small difference in pay between employees regardless of their skills, experience, or seniority.