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CCC Funds has preferred stock outstanding with a par value of $90. The stock pays a quarterly dividend of $4.50 and has a current price

CCC Funds has preferred stock outstanding with a par value of $90. The stock pays a quarterly dividend of $4.50 and has a current price of $150.

A. What is the nominal rate of return on the preferred stock?

B. What is the effective rate of return?

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