Examveda
Examveda

Value of stock is Rs 400 and required rate of return is 20% then preferred dividend would be

A. Rs 80.00

B. Rs 8,000.00

C. Rs 20.00

D. Rs 50.00

Answer: Option A

Solution(By Examveda Team)

Preferred Dividend = Value of stock * Required rate of return
= 400 * 20% = Rs. 80.00

This Question Belongs to Commerce >> Financial Management

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