What is the effective annual rate of return

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You just purchased a preferred share. You paid $97.00 for the preferred share. The preferred share just paid a dividend of $4.50. Dividends are paid annually. What is the effective annual rate of return that you will earn on this investment. Your answer should be stated as a percentage and your answer should be correct to 2 decimal places. Therefore 0.233856 will be recorded as 23.39.

Reference no: EM132679071

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