Nick's Enchiladas has preferred stock outstanding that pays a dividend of $3 at the end of each year. The preferred sells for $55 a share. What is the stock's required rate of return (assume the market is in equilibrium with the required return equal to the expected return)?

5.45%

Explanation:

The value of a preferred stock is calculated by the formula;

Value = Dividend / required return

Making required return the subject we have;

Required return = Dividend/ Value

= 3/55

= 0.05455

= 5.45%

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number