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AAFM Chartered Wealth Manager (CWM) Global Examination GLO_CWM_LVL_1 Question # 237 Topic 24 Discussion

AAFM Chartered Wealth Manager (CWM) Global Examination GLO_CWM_LVL_1 Question # 237 Topic 24 Discussion

GLO_CWM_LVL_1 Exam Topic 24 Question 237 Discussion:
Question #: 237
Topic #: 24

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


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