You buy a preferred stock for $ 20. This share pays a quarterly dividend of $ 0.40.
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Question:
You buy a preferred stock for $ 20. This share pays a quarterly dividend of $ 0.40. You sell the stock two years later when the market demanded rate is 7% annualized quarterly. Calculate the annual effective rate of return you realized by holding this stock for two years and assuming the dividends were reinvested at the annual rate of 6% capitalized quarterly.
Related Book For
Personal Finance Turning Money into Wealth
ISBN: 978-0133856439
7th edition
Authors: Arthur J. Keown
Posted Date: