Bueno Media preferred stock shares pay a $4 annual dividend and sell f
Bueno Media preferred stock shares pay a $4 annual dividend and sell for $57.14 per share. What is the current required rate of return for their shares?
A) 7.00%
B) 6.93%
C) 6.51%
D) 5.29%
ANSWER
A
Explanation: A) r = PMT/Price = $4/$57.14 = 7.00%.
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