Temp Force recently issued preferred stock that pays an annual dividend of $5 at a price of $50 per share What is the expected return to an investor who buys this preferred stock ...

Temp Force recently issued preferred stock that pays an annual dividend of $5 at a price of

Question:

Temp Force recently issued preferred stock that pays an annual of $5 at a price of $50 per share. What is the to an investor who buys this preferred stock?

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... Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...