A Firm Has $3 Million Market Value and It Sells

question 101

Multiple Choice

A firm has $3 million market value and it sells preference shares at $100 per share. If the annual dividend on the preference share is $9 and it trades at $95, what is the cost of preference share capital?

• A)10.41%
• B)9.47%
• C)10.21%
• D)8.75%

---

Definitions:

Firstborn Children

Children who are the first offspring born to a set of parents, often discussed in developmental psychology for their unique social and psychological traits.

Anxiety Levels

The intensity of feelings of worry, nervousness, or unease about something with an uncertain outcome.

Aggressively

In a manner showing readiness to attack or confront; characterized by or stemming from aggression.

Functional Play

A form of play primarily observed in children that involves interaction with and manipulation of their environment to learn, explore, and understand the world around them.