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  • May 19, 2007, 07:37 PM
    cnichols33
    rate of return on preferred stock
    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
  • May 19, 2007, 08:10 PM
    bunnyKutty
    Kp = D/SV
    = 9/76
    =0.12 or 12%

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