A Share of 5% Preferred Stock Has a Par Value

question 10

Multiple Choice

A share of 5% preferred stock has a par value of $30 and market value of $100.The owners of the preferred stock will receive a cash dividend of: (Round your answer to the nearest cent. )

• A)$1.50 per share.
• B)$70 per share.
• C)$5.00 per share.
• D)$30.00 per share.

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Definitions:

Vertical Axis

The vertical number line of a graph along which values of the y-variable are measured; also referred to as the y-axis.

Linear Relationship

The relationship between two variables in which the slope is constant and therefore is depicted on a graph by a curve that is a straight line.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a particular price over a specified period.

Quantity Demanded

The overall volume of a good or service that buyers are eager and capable of acquiring at a certain price within a specific period.