What would be the loss if yields rose to 12 percent?

If a preferred stock pays an annual Rs. 4.50 dividend, what should be the price of the stock if comparable yields are 10 percent?

What would be the loss if yields rose to 12 percent?
A . Rs. 450/- loss Rs. 75
B . Rs. 45/- loss Rs. 7.50
C . Rs. 45/- loss Rs. 4.50
D . Rs. 450/- loss Rs. 6.25

View Answer

Answer: B