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Rebello's Preferred Stock Pays a Dividend of $1

Question 4

Multiple Choice

Rebello's preferred stock pays a dividend of $1.00 per quarter,and it sells for $55.00 per share.What is its effective annual (not nominal) rate of return?


A) 6.95%
B) 5.61%
C) 7.17%
D) 7.70%
E) 7.47%

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