Answer:
Annual rate of return = 08.94%
Explanation:
given data
annual Dividend = $2
Price per share of the preferred stock = $22.39
solution
Annual rate of return from the preferred stock that is express as
Annual rate of return = annual Dividend ÷ Price per share of the preferred stock ............1
put here value and we get
Annual rate of return = [tex]\frac{2}{22.39}[/tex]
Annual rate of return = 0.0894
Annual rate of return = 08.94%
