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9. Problem 9.09 (Preferred Stock Returns) eBook Avondale Aeronautics has perpetual preferred stock outstanding with a par value of $100. The stock pays a quarterly

9. Problem 9.09 (Preferred Stock Returns)

eBook
Avondale Aeronautics has perpetual preferred stock outstanding with a par value of $100. The stock pays a quarterly dividend of $2.00 and its current price is $77.

What is its nominal annual rate of return? Do not round intermediate calculations. Round your answer to two decimal places. %

What is its effective annual rate of return? Do not round intermediate calculations. Round your answer to two decimal places. %

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