Answer:
5.46%
Explanation:
We know,
Total rate return on an investment = (Current stock price - Previous stock price + Return on preferred stocks) ÷ Previous stock price
Given,
Current stock price = $89.10
Previous stock price = $91.60
Return on preferred stock par value = $7.50
Putting the values into the above formula, we can get,
Total rate return on an investment = ($89.10 - $91.60 + $7.50) ÷ $91.60
Total rate return on an investment = ($96.60 - $91.60) ÷ $91.60
Total rate return on an investment = $5 ÷ $91.60
Total rate return on an investment = 0.05458
Therefore, return from the investment = 5.46% (rounded to two decimal places)
