A company's preferred stock pays an annual dividend of $4.00 per share. The stock is currently priced at $80.00. What is the current dividend yield?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 4P
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A company's preferred stock pays an annual dividend of $4.00 per share. The stock is currently priced
at $80.00. What is the current dividend yield?
O 8.0%
O 4.0%
O 10.0%
O 5.0%
12.0%
Transcribed Image Text:A company's preferred stock pays an annual dividend of $4.00 per share. The stock is currently priced at $80.00. What is the current dividend yield? O 8.0% O 4.0% O 10.0% O 5.0% 12.0%
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