The Required Rate of Return on TKF Preferred Shares Have

question 53

Multiple Choice

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

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

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Definitions:

Common Share

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company’s profits via dividends.

Liability

The state of being legally responsible for something, especially in terms of debts or legal obligations.

Corporation's Bylaws

The official rules and regulations that govern the management and operations of a corporation, typically established by its board of directors.

Shareholders' Resolution

A formal decision or expression of opinion made by the shareholders of a corporation, usually made during a shareholder meeting.