8-13: Preferred Stock Problem

8-10 Preferred Stock Rate of Return

What is the required rate of return on a preferred stock with a $50 par value, a stated annual dividend of 9% of par, and a current market price of (a) $64, (b) $81, (c) $112, and (d) $148 (assume the market is in equilibrium with the required return equal to the expected return)? Round the answers to two decimal places.