A Share of 5% Preferred Stock Has a Par Value

question 24

Multiple Choice

A share of 5% preferred stock has a par value of $50 and market value of $75. The owners of the preferred stock will receive a dividend of:

• A) $2.50 per share.
• B) $3.75 per share.
• C) $5 per share.
• D) $50 per share.

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Definitions:

Stamp Act

A 1765 British law imposed on the American colonies requiring them to pay a tax on printed materials, which led to widespread protest.

Revenue

Revenue is the total amount of income generated by the sale of goods or services related to a company's primary operations.

Debt Burden

The impact of debt on an entity's finances, often measured as the ratio of debt to income or GDP, indicating the entity's ability to repay.

Cherokees

A Native American people originally from the southeastern United States, forcibly relocated in the 1830s to what is now Oklahoma in the event known as the Trail of Tears.