AGL Limited Issued Preference Shares in 2014 That Had a Par

question 70

Multiple Choice

AGL Limited issued preference shares in 2014 that had a par value of $85.The preference share pays a dividend of 5.75%.Investors require a rate of return of 6.50% today on this share.What is the value of the preference share today? Round to the nearest $1.

• A)$100
• B)$85
• C)$75
• D)$16

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Definitions:

Lowered Productivity

A reduction in the rate at which employees produce goods or services, often indicating inefficiencies or challenges within the workplace.

Quick Strikes

Rapid, short-term work stoppages by workers to protest against labor issues without engaging in prolonged strikes.

Pressuring Employer

Tactics or strategies used by employees or unions to encourage employers to meet their demands or negotiate.

Contractual Terms

Specific provisions or stipulations contained within a contract that outline the obligations, rights, and responsibilities of each party.