Lithium Lakes Industries Preferred Stock Has a Par Value of $100

question 69

Multiple Choice

Lithium Lakes Industries preferred stock has a par value of $100 and pays a dividend of $6.00 per share.It presently sells for $87 per share.What do investors require as a rate of return on this stock? Round off to the nearest .10%.

• A) 14.5%
• B) 9.3%
• C) 6.9%
• D) 6.0%

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