What is the required rate of return to the investor who is willing to purchase a Duke Power preferred stock with an $8.70 dividend, a par value of $100, and a current market price of $87?
A)10.7%
B)8.7%
C)9.4%
D)10.0%

Name: What is the required rate of return to the investor who is willing to purchase a Duke Power preferred stock with an $8.70 dividend, a par value of $100, and a current market price of $87? A)10.7% B)8.7% C)9.4% D)10.0%
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Quizplus · Accepted Answer

kp = D₀/P₀ = $8.70/$87 = 10%

What Is the Required Rate of Return to the Investor