Question
The preferred stock of Marble Comics pays annual dividends of $ 1 in perpetuity(starting in oneyear). If you buy a preferred share for $ 22.32
The preferred stock of Marble Comics pays annual dividends of $1 in perpetuity(starting in oneyear). If you buy a preferred share for $22.32 and hold it inperpetuity, then what is your annual rate ofreturn? Express your answer as a percentage rounded to 2 places. i.e. 12.3456%=12.35%.
What is your annual rate of return from the preferredstock?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
15th edition
1337671002, 978-1337395250
