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:

Resistance

An electrical quantity that measures how the device or material reduces the electric current flow through it, measured in Ohms (Ω).

Voltage Across

The electrical potential difference between two points in a circuit, driving the flow of current between those points.

Applied Voltage

The external voltage applied across an electrical device or a component within a circuit.

R2

A designation often used in mathematics and statistics for the coefficient of determination, or in electronics to denote a specific resistor in a circuit.