https://www.chegg.com/homework-help/aplia-for-brigham-daves-intermediate-financial-management-11th-edition-instant-access-11th-edition-chapter-5-problem-4p-solution-9781133049524?trackid=5dd58adfd39c&strackid=583cb6a837c4 Preferred Stock Valuation Nicks Enchiladas Incorporated has preferred stock outstanding that pays a dividend of $5 at the end of each year. The preferred sells for $50 a share. What is the stocks required rate of return? From the given data, by substituting the above values in the required rate of return formula: $5.00/$60 = 0.0833 0r 8.33% Therefore, preferred stock required rate of return = 8.33% ----------------------------------------- The above is the solution I found on chegg. I solved the question and I got 10% as the required rate of return. when I tried to verify my answer on chegg, I saw 8.33%. If the 10% is correct, you might need to take the 8.33% solution down. I see it already has two thumbs down (negative reviews).