The Required Rate of Return on TKF Preferred Has Fallen

question 72

Multiple Choice

The required rate of return on TKF preferred has fallen from 5.75% at the time of issue to the present rate of 5%. The stock now sells for $115. What was the original price?

• A) $75.61
• B) $132.25
• C) $114
• D) $100

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Definitions:

False Representation

The act of making an untrue statement or depiction of facts, products, or services with the intention to deceive or mislead others.

Misrepresentation

Misrepresentation occurs when a false statement of fact is made that induces another party to enter into a contract, potentially leading to legal consequences.

Third Restatement of Torts

An influential set of principles released by the American Law Institute, providing a comprehensive update and clarification on tort law in the United States.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another, often in financial matters or trusteeship.