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QUESTION
If GM Series A preferred shares pay a $4.
If GM Series A preferred shares pay a $4.40 per share dividend in perpetuity, and are trading for $110 per share, what is the yield (equivalently, expected return; equivalently, discount rate) on those shares?
- 4.4%
- 5.5%
- 8.0%
- 4.0%
- 3.2%
