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A Share of Preferred Stock Pays a Dividend of $0

Question 34

Multiple Choice

A share of preferred stock pays a dividend of $0.50 each quarter. If you are willing to pay $20.00 for this preferred stock, what is your nominal (not effective) annual rate of return?


A) 10%
B) 8%
C) 6%
D) 12%
E) 14%

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