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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?

a. 10%

b. 12%

c. 15%

d. 17%

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M92311652

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