Q871
Value of stock is Rs 1200 and preferred dividend is Rs 120 then required rate of return would be
A.
Rs 144,000.00
B.
10.00%
AnswerC.
Rs 10.00
D.
0.2 times
Answer: Option B
Solution
Answer: Option B
Solution:
Required rate of return = Preferred dividend / Value of stock * 100 = 120 / 1200 * 100 = 10.00%