The preferred stock of Rail Lines,Inc.,pays an annual dividend of $12.25 and sells for $59.70 a share.What is the rate of return on this security?
A)19.38 percent
B)19.63 percent
C)20.52 percent
D)20.72 percent
E)20.84 percent

Name: The preferred stock of Rail Lines,Inc.,pays an annual dividend of $12.25 and sells for $59.70 a share.What is the rate of return on this security? A)19.38 percent B)19.63 percent C)20.52 percent D)20.72 percent E)20.84 percent
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Question

Quizplus · Accepted Answer

R = $12.25/$59.70 = 20.52 percent

The Preferred Stock of Rail Lines,Inc