Cornell American preferred stock sells for $28.50. Dividends are $4.25 paid annually. What is the return...

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Cornell American preferred stock sells for $28.50. Dividends are $4.25 paid annually. What is the return...

Cornell American preferred stock sells for $28.50. Dividends are $4.25 paid annually. What is the return on this investment?

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Answer 1

Answer #1

Return on this investment = Dividends / Cost of preferred stock

Return on this investment = $4.25 / $28.50

Return on this investment = 14.91%

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Answer 2

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Cornell American preferred stock sells for $28.50. Dividends are $4.25 paid annually. What is the return...