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3 . A preferred stock has a par value of $ 2 0 0 , a stated dividend of 3 % of par, and a

3. A preferred stock has a par value of $200, a stated dividend of 3% of par, and a current value of $78. What is the nominal rate of return on this stock? What if the current value of the stock changed to $88, what would be its nominal rate of return?

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