Q856
Value of stock is Rs 300 and preferred dividend is Rs 60 then required rate of return would be
A.
18%
B.
20%
AnswerC.
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%.