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Examveda

Preferred dividend is Rs 60 and required rate of return is 20% then value of preferred stock will be

A. Rs 40.00

B. Rs 120.00

C. Rs 12.00

D. Rs 300.00

Answer: Option D

Solution(By Examveda Team)

Value of preferred stock = Dividend/required rate of return x 100
= 60/20 x 100 = 300

This Question Belongs to Commerce >> Financial Management

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Comments ( 1 )

  1. Dnyandev Matke
    Dnyandev Matke :
    5 years ago

    How 300

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