An Issue of Preference Shares Currently Sells for $52

question 61

Multiple Choice

An issue of preference shares currently sells for $52.50 per share and pays a constant annual expected dividend of $2.25 per share.The expected return on this security is [blank].

• A)4.29%
• B)0.04%
• C)8.33%
• D)13.33%

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Definitions:

Olfactory

Pertains to the sense of smell.

Endorphins

Neurochemicals produced by the body that act as natural painkillers and mood elevators, often released during exercise, excitement, and pain.

Substance P

A neuropeptide involved in the transmission of pain signals from the peripheral to the central nervous system.

Morphine

A powerful opiate analgesic derived from the opium poppy, used to relieve severe pain.