Value of stock is Rs 1200 and preferred dividend is Rs 120 then required rate of return would be
A. Rs 144,000.00
B. 10.00%
C. Rs 10.00
D. 0.2 times
Answer: Option B
Solution (By Examveda Team)
Required rate of return = Preferred dividend / Value of stock * 100= 120 / 1200 * 100 = 10.00%
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