Preference Share: Each Quarter, Transam Ltd Pays a Dividend on Its

question 34

Multiple Choice

Preference share: Each quarter, Transam Ltd pays a dividend on its perpetual preference share. Today, the share is selling at $83.45. If the required rate of return for such shares is 10.5 percent, what is the quarterly dividend paid by this company?

• A) $8.76
• B) $10.50
• C) $2.19
• D) $2.63