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:

Critical Thinking

The process of objectively analyzing and evaluating an issue in order to form a judgment.

Illusory Correlation

The perception of a relationship between two variables when no such relationship exists.

Psychological Research

The systematic investigation of the mind and behavior through controlled experimentation and observation.

Everyday Reasoning

The process of making sense of daily occurrences and drawing conclusions based on personal experiences and beliefs.