A Company Issued 7% Preference Shares with a $100 Par

question 183

Multiple Choice

A company issued 7% preference shares with a $100 par value. This means that:

• A) Preference shareholders have a guaranteed dividend.
• B) The amount of the potential dividend is $7 per year per preference share.
• C) Preference shareholders are entitled to 7% of the annual income.
• D) The market price per share will approximate $100 per share.
• E) Only 7% of the total paid-in capital can be preference shares.

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Definitions:

Motor Abilities

Skills related to the movement and coordination of muscles and limbs.

Longitudinal Study

Research that follows the same subjects over a period of time, often years or even decades, to observe changes and developments.

Terman Life Cycle Study

A longitudinal psychological study that began in 1921 by psychologist Lewis Terman, aimed at studying the development and characteristics of gifted children into adulthood.

Cognitive Development

The process by which individuals perceive, think, and understand, through learning, experience, and their senses.