Preferred stock: The preferred stock of Acme International is selling currently at $110.35. If your required rate of return is 9.75 percent, what is the dividend paid by this stock?

Question

Quizplus · Accepted Answer

To calculate the dividend paid by the stock, we need to use the following formula:
Dividend = Preferred stock price * Required rate of return
Dividend = $110.35 * 9.75%
Dividend = $10.76 
Therefore, the correct answer is C.

Preferred Stock: the Preferred Stock of Acme International Is Selling