You bought a share of 7.5 percent preferred stock for $91.60 last year. The market price for your stock is now $89.10. What is your total return to date on this investment?

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)