Value of stock is Rs 900 and required rate of return is 30% then preferred dividend will be
A. Rs 270.00
B. Rs 27,000.00
C. Rs 90.00
D. Rs 170.00
Answer: Option A
Solution (By Examveda Team)
Preferred dividend = Value of stock * Required rate of return= Rs. 900 * 30% = Rs. 270.
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