Preference share: The preference share of Acme International is selling currently at $110.35. If your required rate of return is 9.75 percent, what is the dividend paid by this share?
A) $9.75
B) $11.32
C) $10.76
D) $8.53

Question

Quizplus · Accepted Answer

The dividend paid by the share can be calculated as: 
Dividend = Required rate of return * Current market price 
Dividend = 0.0975 * $110.35 
Dividend = $10.76 
Therefore, the answer is option C.

Preference Share: the Preference Share of Acme International Is Selling