Sanger Music Companys preferred stock, which currently sells for $105 per share, pays an annual dividend equal

Question:

Sanger Music Company’s preferred stock, which currently sells for $105 per share, pays an annual dividend equal to $12.60. What is the yield—that is, the rate of return—that Sanger’s preferred stockholders earn?

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...