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    Intermediate Financial Management Study Set 2
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    Exam 5: Basic Stock Valuation
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    A Share of Preferred Stock Pays a Quarterly Dividend of $2.50
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A Share of Preferred Stock Pays a Quarterly Dividend of $2.50

Question 33

Question 33

Multiple Choice

A share of preferred stock pays a quarterly dividend of $2.50. If the price of this preferred stock is currently $50, what is the nominal annual rate of return?


A) 12%
B) 18%
C) 20%
D) 23%
E) 28%

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