What Is the Rate of Return on a Preferred Stock

question 61

Multiple Choice

What is the rate of return on a preferred stock that has a par value of $50, a market price of $46.50, and a dividend of $4.10?

• A) 8.20%
• B) 11.34%
• C) 8.82%
• D) 12.20%

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Definitions:

Reports

Documents that present information in a structured format for a specific audience and purpose.

Delivery Mode

The method or channel through which a message or information is conveyed to the recipient.

Informal Report

An information or data report presented in a less formal or structured manner, often used for internal communication within organizations.

Memo Format

Memo format is a standardized layout for a memorandum, which is a type of communication used internally within organizations to convey information, directives, or policies.