You have just purchased a share of preferred stock for $50.00. - 2994

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  • Posted on: Wed 21 Mar, 2012
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Request Description

You have just purchased a share of preferred stock for $50.00. The preferred stock pays an annual dividend of $5.50 per share forever. What is the rate of return on your investment?

a.           .055

b.           .010

c.           .110

d.           .220

Solution Description

You have just purchased a share of preferred stock for $50.00. The preferred stock p