Horizon Communications Stock Pays a Fixed Annual Dividend of $3

question 29

Multiple Choice

Horizon Communications stock pays a fixed annual dividend of $3.00. Because of lower inflation, the market's required yield on this preferred stock has gone from 12% to 10%. As a result

• A) Horizon's dividend decreased by 6 cents.
• B) the value of Horizon's preferred increased by $3.00.
• C) the value of Horizon's preferred decreased by $5.00.
• D) the value of Horizon's preferred increased by $5.00.

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Definitions:

Symbolic Changes

Modifications or shifts that are more representational than functional, often aimed at signaling new directions or values.

Task Force

A temporary group of people formed to accomplish a specific objective, often with a deadline.

Incremental Adjustments

Small, gradual changes made continuously to improve or optimize a process, system, or product.

Facilitate Acceptance

The act of making it easier for people to welcome or approve of new ideas, changes, or innovations.