What is the required rate of return to the investor who is willing to purchase a Duke Power preferred stock with a $8.70 dividend, a par value of $100, and a current market price of $87?
| A. |
10.7% |
|
| B. |
8.7% |
|
| C. |
9.4% |
|
| D. |
10.0% |
Required rate of return=Annual dividend/Current value
=8.7/87
which is equal to
=10%
What is the required rate of return to the investor who is willing to purchase a...
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