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Arondale Aeronautics has perpetual preferred stock outstanding with a par value of $100. The stock pays a quarterly dividend of $3.00, and its current price

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Arondale Aeronautics has perpetual preferred stock outstanding with a par value of $100. The stock pays a quarterly dividend of $3.00, and its current price is $78. a. What is its nominal annual rate of return? Do not round Intermediate calculations. Round your answer to two decimal places. % b. What is its effective annual rate of return? Do not round intermediate calculations. Round your answer to two decimal places. %

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