Question

How do you find the expected rate of return on a stock?​

Answer 1

Hey lovely ❤️❤️❤️❤️❤️

Answer:

Divide the expected dividend per share by the price per share of the preferred stock. With our example, this would be $12/$200 or .06. Multiply this answer by 100 to get the percentage rate of return on your investment. In our example, .06 x 100 = 6 so the rate of return for the preferred stock is 6 percent per year.

Hope this helps u dude ☺️