Kevin is comparing investments and knows that he will earn, Financial Management

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Kevin is comparing investments and knows that he will earn

Kevin is comparing investments and knows that he will earn 16% on a share of common stock, but is concerned about the risk of investing in common stock.

He can buy a share of preferred stock for $30.00 and knows that the dividend for that share is a constant $3.60.

What is the rate of return on the preferred share?

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Financial Management: Kevin is comparing investments and knows that he will earn

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Financial Management: Kevin is comparing investments and knows that he will earn

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