Wednesday
April 23, 2014

Homework Help: investing 3-19

Posted by Johnny on Sunday, February 22, 2009 at 12:07am.

A perpetual preferred stock pays a fixed dividend of $9 and sells for $100. What is the
stock’s rate of return?
A. 6.5 percent
B. 9 percent
C. 11 percent
D. 12.5 percent

I think it's B. 9 percent. $9.00 / 100 = .09

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