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10-11-2020
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A preferred stock sells for $54.20 a share and has a market return of 9.68 percent. What is the dividend amount

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Ritmeks Ritmeks

15-11-2020

Answer:

$5.25

Explanation:

A preferred stock is sold at $54.20

The market return is 9.68%

Therefore the dividend amount can be calculated as follows

= 54.20 × 9.68/100

= 54.20 × 0.0968

= $5.25

Hence the dividend amount is $5.25

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