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What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 9% of par, and a current market...

What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 9% of par, and a current market price of (a) $52.00, (b) $76.00, (c) $115.00, and (d) $145.00? Round answers to the nearest hundredth. a. b. c. d.

Solution: Current market price of a perpetual preferred stock is Dividend Per Share/Required Rate of Return(Since growth rate is not given it has been ignored)So, Required/Nominal Rate of Return...
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