Preferred stock outstanding that currently sells

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Reference no: EM131057142

Company NN has preferred stock outstanding that currently sells for $45 a share and no maturity date. The preferred stock pays a preferred dividend of $4 per year. What is the expected rate of return of Company NN’s preferred stock? What would happen to the price of NN’s preferred stock next year if interest rates dropped 0.5% next year?

Reference no: EM131057142

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