Examveda
Examveda

Value of stock is Rs 300 and preferred dividend is Rs 60 then required rate of return would be

A. 18%

B. 20%

C. 22%

D. 24%

Answer: Option B

Solution(By Examveda Team)

Required rate of return = Preferred dividend / Value of stock * 100
= 60 / 300 * 100 = 20%.

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