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ABC Inc. has 1,000,000 outstanding preferred shares. The preferred shares have a par value of $100. The preferred shares just paid a dividend of $1.65.
ABC Inc. has 1,000,000 outstanding preferred shares. The preferred shares have a par value of $100. The preferred shares just paid a dividend of $1.65. Dividends are paid semi-annually. The price of a preferred share is $82.70. What is the effective annual rate of return on the preferred shares?
| 24.33% |
| 1.83% |
| 3.70% |
| 7.53% |
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