Which statement best describes the yield on preferred stock?

Name: Which statement best describes the yield on preferred stock?
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Question

Quizplus · Accepted Answer

The yield on preferred stock is calculated as the dividend per share divided by the price per share. This is accurately represented by the formula in choice C, where $k_{p} = \frac{D_{p}}{P_{p}}$, with $k_{p}$ representing the yield on preferred stock, $D_{p}$ the dividend per share, and $P_{p}$ the price per share.

Which Statement Best Describes the Yield on Preferred Stock