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A share of preferred stock is selling today for $20.00. The share has a par value of $100 and an APR coupon rate of 4.75%.

A share of preferred stock is selling today for $20.00. The share has a par value of $100 and an APR coupon rate of 4.75%. Based on this information, what is the required return to hold a share of preferred stock?

Question 4 options: 28.75% 23.75% 26.25% 21.25%

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