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Shiny Industries producers of crab meat can issue perpetual preferred stock at a price of $35.58...

Shiny Industries producers of crab meat can issue perpetual preferred stock at a price of $35.58 per share. The stock would pay a constant annual dividend of $6.97 per share. What is the company's return on preferred stock (r)?

You answer should be in percentage (##.##) so 12.43% should be entered as 12.43

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Answer #1

Ans 19.59

Return on preferred stock = Dividend / Price * 100

                                     = 6.97 / 35.58 * 100

                                     = 19.59%

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