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# PREFERRED STOCK RETURNS Arondale Aeronautics has perpetual preferred stock outstanding with a par value of $100. The stock pays a quarterly dividend...

**PREFERRED STOCK RETURNS**

Arondale Aeronautics has perpetual preferred stock outstanding with a par value of $100. The stock pays a quarterly dividend of $2, and its current price is $104.

- What is its nominal annual rate of return? Do not round your intermediate calculations. Round your answer to two decimal places.
- %
- What is its effective annual rate of return? Do not round your intermediate calculations. Round your answer to two decimal places.
- %