Alcott's preferred stock pays a dividend of $1.00 per quarter.If the price of the stock is $45.00, what is its nominal (not effective) annual rate of return?
A) 8.03%
B) 8.24%
C) 8.45%
D) 8.67%
E) 8.89%

Question

Quizplus · Accepted Answer

The Answer of Alcott's preferred stock pays a dividend of $1.00 per quarter.If the price of the stock is $45.00, what is its nominal (not effective) annual rate of return?
A) 8.03%
B) 8.24%
C) 8.45%
D) 8.67%
E) 8.89%

Alcott's Preferred Stock Pays a Dividend of $1