Problem:
The preferred stock of Rail Lines, Inc., pays an annual dividend of $12.25 and sells for $59.70 a share.
Required:
Question: What is the rate of return on this security?
- 19.38 percent
- 19.63 percent
- 20.52 percent
- 20.72 percent
- 20.84 percent
Note: Please show how you came up with the solution.