Stocks and Bonds Question?

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Stocks and Bonds Question?

Lets say I have a preferred stock outstanding that pays a dividend of $5 at the end of each year.The preferred stock sells for $60 a share. What is the preferred stock’s required rate of return?

2007-02-09 08:27:45 · 3 answers · asked by **LIBERTY** 1 in Business & Finance ➔ Investing

3 answers

5/60 = 8.33%

2007-02-09 08:37:34 · answer #1 · answered by Anonymous · 0⤊ 1⤋

I'm not sure if I understand this correctly, but I would guess it is 8.33% (5/60=.0833333)

2007-02-09 16:37:14 · answer #2 · answered by the Boss 7 · 0⤊ 0⤋

definetly not bonds hes on steroids

2007-02-09 16:31:02 · answer #3 · answered by Anonymous · 0⤊ 0⤋