Preferred dividend is Rs 50 and required rate of return is 2.5% then value of preferred stock would be

The correct answer is: D. Rs 52.50

Preferred stock is a type of stock that pays a fixed dividend. The value of preferred stock is determined by the following formula:

Value of preferred stock = Preferred dividend / Required rate of return

In this case, the preferred dividend is Rs 50 and the required rate of return is 2.5%. Therefore, the value of preferred stock is:

Value of preferred stock = Rs 50 / 2.5% = Rs 52.50

Option A is incorrect because it is the value of a common stock. Option B is incorrect because it is the value of a preferred stock with a required rate of return of 10%. Option C is incorrect because it is the value of a preferred stock with a preferred dividend of Rs 200.