What is the nominal rate of return on a preferred stock with a $100 par value, a stated dividend of 8 of par, and a current market price of (a) $60, (b) $80, (c) $100, and (d) $140 ...

What is the nominal rate of return on a preferred stock with a $100 par value, a

Question:

What is the nominal rate of return on a preferred stock with a $100 par value, a stated of 8% of par, and a current market price of
(a) $60,
(b) $80,
(c) $100, and
(d) $140?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...