The Fair Market Value of a Preferred Share Is $45

question 74

Short Answer

The fair market value of a preferred share is $45. The share pays a quarterly payment of $.65. An investor is able to purchase the share for $42. What will be the investor's annually compounded rate of return?

---

Definitions:

Extraversion

A personality trait marked by outgoingness, high energy, and positive emotions towards social interactions.

Spotlight Effect

The conviction that people are more focused on how one looks and acts than is actually the case.

Narcissism

A personality trait characterized by an inflated sense of self-importance and a deep need for admiration.

Individualism

An approach in social thinking that values the independence of individuals more than the dominion of collective institutions or government.