Rate of return on preferred stock-stated dividend

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Reference no: EM131050378

Preferred Stock Rate of Return

What is the required rate of return on a preferred stock with a $50 par value, a stated dividend of 7% of par, and a current market price of (a) $55, (b) $80, (c) $109, and (d) $149 (assume the market is in equilibrium with the required return equal to the expected return)? Round the answers to two decimal places.

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Reference no: EM131050378

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