Required rate of return on preferred stock

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Reference no: EM131048181

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) $70, (b) $83, (c) $117, and (d) $145 (assume the market is in equilibrium with the required return equal to the expected return)? Round the answers to two decimal places.

Reference no: EM131048181

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