In the name of ALLAH, the most beneficient, the most merciful

Business Finance (ACC501)

Question (select most suitable option)

  The preferred stock of a company currently sells for Rs. 25 per share. The annual dividend of Rs. 2.50 is fixed. Assuming a constant dividend forever, what is the rate of return on this stock?
5.00 percent
7.00 percent
8.45 percent
10.0 percent