Finance

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Saturated Meat Corporation preferred stock is currently selling for $22 per share. The preferred dividend is $2.50 per share. If Jennifer requires a return of 10% on the preferred stock, should she invest in this stock?

  • Finance -

    10% of 22 = 2.2

    What do you think?

  • Finance -

    I think not but why?

  • Finance -

    She should buy this stock. The yearly dividend is $2.50. That is more than 10% of the investment.

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