Farley inches perpetua preferred stock out tande that selle

Farley inches perpetua, preferred stock out tande that selle for S42 a share and pays·di dend of $S00 at ?·end of each year what?the requred rate of return? Round your anpwer to two decimal place

Solution

Calculation of Required rate of return of Preferred stock

Required rate of return= Preferred stock Dividend / Stock Price

=5 /42

=11.90%