Asked by Haley Van Roekel on Jul 02, 2024
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Marge Brown bought 200 shares of Kenworth $50 par 7% preferred stock at the current market price of $58 per share. What is her rate of yield if Kenworth pays the regular dividend for the year?
Rate Of Yield
From an investment in stock, the ratio of the dividend to the total cost of the stock.
Preferred Stock
A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with fixed dividends.
Par
A value assigned the shares of capital stock and stated on the stock certificate.
- Determine the rate of yield on preferred stock shares.
Verified Answer
TP
Learning Objectives
- Determine the rate of yield on preferred stock shares.