Value of stock is Rs 400 and required rate of return is 20% then preferred dividend would be

Rs 80.00
Rs 8,000.00
Rs 20.00
Rs 50.00

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.

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