You Have Just Purchased a Share of Preferred Stock for $50.00.The

question 39

Multiple Choice

You have just purchased a share of preferred stock for $50.00.The preferred stock pays an annual dividend of $5.50 per share forever.What is the rate of return on your investment?

• A) 0.055
• B) 0.010
• C) 0.110
• D) 0.220

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