Multiple Choice
A firm has an issue of preferred stock outstanding that has a par value of $100 and a 4% dividend. If the current market price of the preferred stock is $50, the yield on the preferred stock is ________.
A) 4.00%
B) 6.00%
C) 8.00%
D) 12.00%
Correct Answer:
Verified
Correct Answer:
Verified
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