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8. A firm has a perpetual preferred stock that pays semi-annually dividends of $4.50. If its current price is $99.00, what is its rate of

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8. A firm has a perpetual preferred stock that pays semi-annually dividends of $4.50. If its current price is $99.00, what is its rate of return (r) and the effective annual rate (EAR)? -8.73% EAR=9.30% r=9.09% EAR8.56% 9.09%; EAR 9.67% =9.6796, EAR= 9,30% -9.09%, EAR= 9.30%

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