A Share of Preferred Stock Pays a Dividend of $0

question 47

Multiple Choice

A share of preferred stock pays a dividend of $0.50 each quarter.If you are willing to pay $20.00 for this preferred stock,what is your simple (not effective) annual rate of return?

• A) 10%
• B) 8%
• C) 6%
• D) 12%
• E) 14%

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