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If preferred stock has an annual dividend of $2.75 and it is currently selling in the...

If preferred stock has an annual dividend of $2.75 and it is currently selling in the market for $19.53, what is the preferred stock’s expected return? include your answer to two decimals as a percentage

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Answer #1

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Preferred dividend= $2.75

Current price of preferred dividend= $19.53

Expected return= Preferred dividend/ Current price of preferred dividend

                               = $2.75/ $19.53

                               = 0.1408*100

                               = 14.08%.

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