Question
The preferred stock of Marble Comics pays annual dividends of $ 2 in perpetuity(starting in oneyear). If you buy a preferred share for $ 22.32
The preferred stock of Marble Comics pays annual dividends of $2 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%equals =12.35%.
What is your annual rate of return from the preferredstock?
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
9th Edition
0134519264, 9780134519265
