SOLUTION: YOU HAVE PURCHASED A SHARE OF PREFERRED STOCK FOR $50. THE PREFERRED STOCK PAYS AN ANNUAL DIVIDEND OF $5.50 PER SHARE. WHAT IS THE RATE OF RETURN ON YOUR INVESTMENT? A. 5.5% B.

Question 69780: YOU HAVE PURCHASED A SHARE OF PREFERRED STOCK FOR $50. THE PREFERRED STOCK PAYS AN ANNUAL DIVIDEND OF $5.50 PER SHARE. WHAT IS THE RATE OF RETURN ON YOUR INVESTMENT?
A. 5.5%
B. 10.0%
C. 11.0%
D. 22.0%
I SET THIS UP AS 50x11.0=5.5
WHICH WOULD MAKE THE CORRECT ANSWER C, DID I DO THIS CORRECTLY?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
YOU HAVE PURCHASED A SHARE OF PREFERRED STOCK FOR $50. THE PREFERRED STOCK PAYS AN ANNUAL DIVIDEND OF $5.50 PER SHARE. WHAT IS THE RATE OF RETURN ON YOUR INVESTMENT?
---------
5.5/50 = 0.11 = 11%
Cheers,
Stan H.
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