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

How 300