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

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Definitions:

Sherman Act

An antitrust law enacted in 1890 that prohibits monopolistic practices and promotes fair competition in the United States.

Direct Injury

A harm or damage suffered directly by an individual or entity, not indirectly through another's injury.

Violation

The act of breaking a law, agreement, or rule, resulting in a failure to comply with legal or contractual obligations.

Per Se Analysis

Per se analysis is a legal doctrine under antitrust laws where certain activities or agreements are considered illegal without the need for further inquiry into their actual harm or purpose, due to their inherently anti-competitive nature.