The preferred stock of North Coast Shoreline pays an annual dividend of $1.70 and sells for $20.24 a share. What is the rate of return on this security?

Name: The preferred stock of North Coast Shoreline pays an annual dividend of $1.70 and sells for $20.24 a share. What is the rate of return on this security?
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Question

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The rate of return on the preferred stock is calculated by dividing the annual dividend by the price per share. So, $1.70 / $20.24 = 0.084 or 8.40%.

The Preferred Stock of North Coast Shoreline Pays an Annual