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Value of stock is Rs 1200 and preferred dividend is Rs...

This question belongs to Commerce Financial Management
Financial Management
?

Value of stock is Rs 1200 and preferred dividend is Rs 120 then required rate of return would be

Answer & Solution
Correct Answer: Option B
Required rate of return = Preferred dividend / Value of stock * 100
= 120 / 1200 * 100 = 10.00%
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