Q828
Preferred dividend is Rs 50 and required rate of return is 2.5% then value of preferred stock would be
A.
Rs 20.00
B.
Rs 125.00
C.
Rs 2,000.00
AnswerD.
Rs 52.50
Answer: Option C
Solution
Answer: Option C
Solution:
Preferred stock = Preferred dividend / Required rate of return * 100 = 50 / 2.5 * 100 = Rs. 2000.