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A company's preferred stock is currently selling for $49.05 and it pays a fixed dividend of...

A company's preferred stock is currently selling for $49.05 and it pays a fixed dividend of $2.58. If you purchased the stock for $49.05, you would expect to earn ___.__% on your investment. Round your answer to 2 decimal places.

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Answer #1

Ans 5.26%

Earning = Dividend / Price * 100

             = 2.58 / 49.05 * 100

             = 5.26%

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