rate of return on preferred stock

cnichols33 · #1 May 19, 2007, 07:37 PM

Company Z has a preferred stock outstanding that pays a $9 annual dividend. It has a price of $76. What is the required rate of return (yield) on the preferred stock?

Thanks

Lynn

bunnyKutty · May 19, 2007, 08:10 PM

Kp = D/SV
= 9/76
=0.12 or 12%



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