What is the effective annual rate of return

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Reference no: EM131329196

1. Suppose a preferred stock pays a quarterly dividend of $2 per share. The next dividend comes in exactly one-fourth of a year. If the price of the stock is $80, what is the effective annual rate of return that the stock offers investors?

2. A particular preferred stock pays a $1 quarterly dividend and offers investors an effective annual rate of return of 12.55 percent. What is the price per share?

Reference no: EM131329196

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