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Preferred dividend is Rs 50 and required rate of return is...

This question belongs to Commerce Financial Management
Financial Management
?

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

Answer & Solution
Correct Answer: Option C
Preferred stock = Preferred dividend / Required rate of return * 100
= 50 / 2.5 * 100 = Rs. 2000.
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