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.

1. What is its nominal annual rate of return? Do not round your intermediate calculations. Round your answer to two decimal places. 
2. %
3. What is its effective annual rate of return? Do not round your intermediate calculations. Round your answer to two decimal places. 
4. %