Click here to read the eBook: Preferred Stock PREFERRED STOCK RATE OF RETURN What will be the nominal rate of return on...

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Click here to read the eBook: Preferred Stock PREFERRED STOCK RATE OF RETURN What will be the nominal rate of return on a per

Answer 1

Answer #1

Annual dividend=100*11%=11

Nominal rate of return=Annual dividend/Current value

1.Nominal rate of return=11/61=18.03%(Approx).

2.Nominal rate of return=11/85=12.94%(Approx).

3.Nominal rate of return=11/117=9.40%(Approx).

4.Nominal rate of return=11/142=7.75%(Approx).

Answer 2

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