Allison Corp.has just issued nonconvertible preferred stock (cumulative)with a par value of $20 and an annual dividend rate of 4.25%.The preferred stock is currently selling for $18.75 per share.What is the annual yield or return (r)on this preferred stock?

Question

Quizplus · Accepted Answer

The Answer of Allison Corp.has just issued nonconvertible preferred stock (cumulative)with a par value of $20 and an annual dividend rate of 4.25%.The preferred stock is currently selling for $18.75 per share.What is the annual yield or return (r)on this preferred stock?