The preferred stock of Deep South Pies pays an annual dividend of $1.40 and sells for $18.20 a share. What is the rate of return on this security?

A) 6.67%
B) 7.69%
C) 9.50%
D) 10.33%
E) 13.00%

Annual Dividend

The total dividend payment a shareholder will receive from a company in a single year, per share owned.

Rate Of Return

The success or failure of an investment over a tailored period, represented in terms of the percentage of the investment's cost price.

Preferred Stock

A type of stock that provides a fixed dividend before any dividends are paid to common stockholders and typically has priority over common stock in the event of bankruptcy.