Preference Shares of Dunmovin Pay a Dividend of $4 Each

question 60

Multiple Choice

Preference shares of Dunmovin pay a dividend of $4 each year and trade at a price of $30. What is the cost of preference share capital for Dunmovin?

• A)15.5%
• B)16.2%
• C)13.3%
• D)14.5%

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Definitions:

Skills

The ability to do something well, often as a result of knowledge, practice, and aptitude.

Learning

The acquisition of knowledge or skills through experience, study, or by being taught, which leads to a change in behavior or understanding.

Bandura

Refers to Albert Bandura, a psychologist known for his work on social learning theory, emphasizing the role of observational learning, imitation, and modeling.

Engage

To participate or become involved in a particular activity or to enter into combat or conflict.