What is its effective annual rate of return

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Reference no: EM132816666

Problem - PREFERRED STOCK RETURNS - Avondale Aeronautics has perpetual preferred stock outstanding with a par value of $100. The stock pays a quarterly dividend of $1.00 and its current price is $45.

Required -

a. What is its nominal annual rate of return?

b. What is its effective annual rate of return?

Reference no: EM132816666

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