Examveda
Examveda

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%

This Question Belongs to Commerce >> Financial Management

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