A company has issued preferred stock with an annual dividend of $3.08 that will be paid...
A company has issued preferred stock with an annual dividend of $3.08 that will be paid in perpetuity. The current price of the stock is $42.15. What is the expected rate of return on the preferred stock? Enter your answer as a percentage. Do not include the percentage sign in your answer.
Enter your response below rounded to 2 DECIMAL PLACES.
Homework Answers
Ans 7.31
expected rate of return = Dividend / Current Price of Stock * 100
= 3.08 / 42.15 * 100
= 7.31%
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