Vidyalelo
Management · Q856

Financial Management

Graduate and Post Graduate · Management · question 856

Q856

Value of stock is Rs 300 and preferred dividend is Rs 60 then required rate of return would be

A.
18%
B.
20%
Answer
C.
22%
D.
24%

Answer: Option B

Solution

Answer: Option B
Solution:
Required rate of return = Preferred dividend / Value of stock * 100
= 60 / 300 * 100 = 20%.