An Issue of Preference Share Currently Sells for $52

question 5

Multiple Choice

An issue of preference share currently sells for $52.50 per share and pays a constant annual expected dividend of $2.25 per share.The expected return on this security is

• A)4.29%.
• B)0.04%.
• C)8.33%.
• D)13.33%.

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Definitions:

Ileal Conduit

Most commonly used urinary diversion procedure.

Necrosis

The death of body tissue due to lack of blood supply, infections, toxins, or trauma, often resulting in tissue damage.

Stoma

An artificial opening in the abdominal wall; it may be permanent or temporary.

Nocturia

Increased frequency of urination at night that is not a result of increased fluid intake