The preferred stock of Rail Lines, Inc., pays an annual dividend of $12.25 and sells for...

Question

Question

The preferred stock of Rail Lines, Inc., pays an annual dividend of $12.25 and sells for $59.70 a share. What is the rate of return on this security?

Answer 1

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Answer #1

ROR= Div/price

12.25/59.70

=20.52%

Answer 2

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