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15 March, 08:15

rant Hillside Homes, Inc., has preferred stock outstanding that pays an annual dividend of $9.80. Its price is $110. What is the required rate of return (yield) on the preferred stock

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  1. 15 March, 09:43
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    The correct answer is: 8,9%.

    Explanation:

    The dividend yield is the amount of money a company pays to its stakeholders for owning stocks. The dividend yield is calculated on a yearly basis. The dividend yield is calculated by dividing the annual dividend of the stock with the share price of the asset. Thus, in the example:

    Dividend yield = Annual Dividend / Share Price

    Dividend yield = $9.8 / $ 110

    Dividend yield = 0.089 8,9%
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