What is the required rate of return on a preferred stock

Reference no: EM13268360

What is the required rate of return on a preferred stock with a $50 par value, a stated dividend of 10% of par, and a current market price of (a) $54, (b) $89, (c) $101, and (d) $132 (assume the market is in equilibrium with the required return equal to the expected return)? Round the answers to two decimal places.

a. %

b. %

c. %

d. %

Reference no: EM13268360

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