# Preferred Stock Rate of ReturnWhat is the required rate of return on a preferred stock with a \$50 par value, a stated annual dividend of 9% of par, and a current market price of (a) \$68, (b) \$86, (c) \$110, 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.     %     %     %     %

Question

Preferred Stock Rate of Return

What is the required rate of return on a preferred stock with a \$50 par value, a stated annual dividend of 9% of par, and a current market price of (a) \$68, (b) \$86, (c) \$110, 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.

1.      %

2.      %

3.      %

4.      %

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Step 1

Calculation of d...

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