The preferred stock of a company currently sells for Rs 25 per-00255
The preferred stock of a company currently sells for Rs. 25 per share. The annual dividend of Rs. 2.50 is fixed. Assuming a constant dividend forever, what is the rate of return on this stock?
This multiple choice question (MCQ) is related to the book/course
vu acc501 Business Finance.
It can also be found in
vu acc501 Mid Term - Quiz No.2.
The preferred stock of a company currently sells for Rs. 25 per share. The annual dividend of Rs. 2.50 is fixed. Assuming a constant dividend forever, what is the rate of return on this stock?
5.00 percent
7.00 percent
8.45 percent
10.0 percent
