What Is the Value of a Preference Share That Pays

question 81

Multiple Choice

What is the value of a preference share that pays a $2.10 dividend to an investor with a required rate of return of 6% (round your answer to the nearest $1) ?

• A)$35
• B)$23
• C)$17
• D)$21

Compute the savings realized from making payments at different intervals due to the impact of interest compounding.

Understand and calculate the present value and future value of cash flows and annuities.

Evaluate the economic value of different payment offers to make informed financial decisions.

Apply different compounded interest rates over varying periods to determine the value of investments or loans.

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Definitions:

Diuretic

A substance that promotes the increased production of urine, often used in medicine to manage fluid balance and reduce swelling.

Renal Capillaries

Tiny blood vessels in the kidneys where exchange of substances between blood and urine takes place.

Blood Pressure

The pressure of blood against the walls of blood vessels.

Urinary Tract Infections

Infections that occur in any part of the urinary system, such as the bladder or kidneys, typically caused by bacteria.