Vidyalelo
Management · Q908

Financial Management

Graduate and Post Graduate · Management · question 908

Q908

Value of stock is Rs 900 and required rate of return is 30% then preferred dividend will be

A.
Rs 270.00
Answer
B.
Rs 27,000.00
C.
Rs 90.00
D.
Rs 170.00

Answer: Option A

Solution

Answer: Option A
Solution:
Preferred dividend = Value of stock * Required rate of return
= Rs. 900 * 30% = Rs. 270.