National Grit's Preference Shares Have a Par Value of $100

question 80

Multiple Choice

National Grit's preference shares have a par value of $100, sell for $85 and pay $11 each year in dividends.What is the required rate of return?

• A)12.9 %
• B)11%
• C)1.29%
• D)8.5%

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Definitions:

Globalization Of Production

The process of firms expanding their operations by developing the international organization of their product supply chains.

National Differences

Variations in cultural, economic, legal, and political systems across countries that can affect how businesses operate internationally.

Cost And Quality

Describes the relationship between the cost of producing a good or service and its quality, often indicating that higher quality can lead to higher production costs.

Global Convergence

The process by which ideas, goods, and services spread and integrate across different cultures and countries, leading to increased similarity.