Nominal rate of return on perpetual preferred stock


What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 7% of par, and a current market price of (a) $60, (b) $84, (c) $105, and (d) $132? Round your answers to two decimal places.

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Finance Basics: Nominal rate of return on perpetual preferred stock
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