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

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