6. AOK preferred stock pays an annual dividend of $6.50. What is the rate of return...

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Question

6. AOK preferred stock pays an annual dividend of $6.50. What is the rate of return if the stock currently sells for $73.03 per share?

8.90% Please Show All Work

business finance

Answer 1

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Answer #1

Rate of Return for a preferred stock = Annual dividend/Current Share Price

Rate of Return = $6.50/$73.03

Rate of Return = 8.90%

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Answer 2

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