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Examveda

Preferred dividend is Rs 50 and required rate of return is 2.5% then value of preferred stock would be

A. Rs 20.00

B. Rs 125.00

C. Rs 2,000.00

D. Rs 52.50

Answer: Option C

Solution(By Examveda Team)

Preferred stock = Preferred dividend / Required rate of return * 100
= 50 / 2.5 * 100 = Rs. 2000.

This Question Belongs to Commerce >> Financial Management

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