Question: #8 IBM issues preferred stock that carries a par value of $100.00. It also had a dividend payout ratio of 8.0% of par value. The

#8 IBM issues preferred stock that carries a par value of

#8 IBM issues preferred stock that carries a par value of $100.00. It also had a dividend payout ratio of 8.0% of par value. The current price of the stock is $140.00 per share. What is the Expected Rate of Return on the IBM stock? a. 6.75% b. 8.00% c. 5.71% d. 4.65%

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