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#8) Waterway Mechanical Ltd.'s preferred shares have a par value of $50, a dividend rate of 7.0 percent, and trade at a price of $70.
#8) Waterway Mechanical Ltd.'s preferred shares have a par value of $50, a dividend rate of 7.0 percent, and trade at a price of $70. Wildhorse Inc.s preferred shares have a par value of $60, have a dividend rate of 4.8 percent, and trade at a price of $45.
A)
Required rate of return | ||
Waterway Mechanical Ltd. | % | |
Wildhorse Inc. | % |
B) Which stock is riskier? Round answers to 2 decimal places, e.g. 5.17%.)
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