Value of stock is Rs 1200 and preferred dividend is Rs 120 then required rate of return would be

Rs 144,000.00
10.00%
Rs 10.00
0.2 times

The correct answer is B. 10.00%.

The required rate of return is the minimum return that an investor expects to earn on an investment. It is calculated by dividing the preferred dividend by the value of the stock. In this case, the preferred dividend is Rs 120 and the value of the stock is Rs 1200, so the required rate of return is 10.00%.

Option A is incorrect because it is the value of the stock, not the required rate of return.

Option C is incorrect because it is the preferred dividend, not the required rate of return.

Option D is incorrect because it is not a percentage.

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