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29-11-2020
Business

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Amazon Corporation has preferred stock outstanding that pays a $12.80 annual dividend. It price is $158. What is the required rate of return (yield) on the preferred stock?

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Tundexi Tundexi

30-11-2020

Answer:

8.10%

Explanation:

The required rate of return (yield) on the preferred stock = Dividend / Price

= $12.80 / $158 = 0.0810126582278481 = 8.10%

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