Preferred stock returns

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Preferred stock returns

Bruner Aeronautics has perpetual preferred stock outstanding with a par value of $100. The stock pays a quarterly dividend of $3, and its current price is $123.

What is its nominal annual rate of return? Round your answer to two decimal places.

%

 

What is its effective annual rate of return? Round your answer to two decimal places.

Reference no: EM13806752

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