An Allied Northern preferred stock pays a $3.84 annual dividend. What is the value of the stock at a 9.5 percent return?

A) $40.42
B) $42.67
C) $38.40
D) none of the above

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock and typically dividends that are paid out before those to common stockholders.

Annual Dividend

The total amount of dividend payments a company makes to its shareholders over a single fiscal year.

Return

The income generated on an investment over a particular period of time, expressed as a percentage of the investment's initial cost.