The correct answer is C. Rs 20.00.
The formula for calculating preferred dividend is:
Preferred dividend = Value of stock / Required rate of return
In this case, the value of stock is Rs 400 and the required rate of return is 20%. Therefore, the preferred dividend is:
Preferred dividend = Rs 400 / 20% = Rs 20.00
Option A is incorrect because it is the value of the stock, not the preferred dividend. Option B is incorrect because it is the value of the stock multiplied by 20, which is the required rate of return. Option D is incorrect because it is the value of the stock divided by 2, which is not the required rate of return.