a preferred share having present value of $1000 will pay $20 dividend. what's its rate of...

Question

Question

a preferred share having present value of $1000 will pay $20 dividend. what's its rate of return.

business finance

Answer 1

Answer #1

Calculation of rate of return:

Rate of return= dividend/present value

Rate of return= 20/1000= 0.02

Rate of return= 2%

Answer 2

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