You Have Just Purchased a Share of Preferred Stock for $50.00.The

question 35

Multiple Choice

You have just purchased a share of preferred stock for $50.00.The preferred stock pays an annual dividend of $5.50 per share forever.What is the rate of return on your investment?

• A).055
• B).010
• C).110
• D).220

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Definitions:

Profit

The financial gain achieved when the amount of revenue gained exceeds the expenses, costs, and taxes needed to sustain the activity.

Markdown

A reduction in the selling price of goods or services, often to clear old stock or to beat competitors.

Shiraz Wine

A style of wine made from the dark-skinned Syrah grape, known for its bold flavors.

Above-ground Pool

A pool structure that sits on top of the ground, as opposed to being embedded into it, often made of prefabricated components.