Q899
Preferred dividend is Rs 60 and required rate of return is 20% then value of preferred stock will be
A.
Rs 40.00
B.
Rs 120.00
C.
Rs 12.00
D.
Rs 300.00
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Value of preferred stock = Dividend/required rate of return x 100= 60/20 x 100 = 300