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View Full Version : Rate of return on preferred stock


cnichols33
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%