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Company A's preferred stocks pay a fixed dividend of $20 at the end of every month. Company A's common stocks pay a quarterly dividend. A
Company A's preferred stocks pay a fixed dividend of $20 at the end of every month. Company A's common stocks pay a quarterly dividend. A $5 dividend was just paid to the common stockholders. What annual effective growth rate is expected on the common stock dividends if the prices of the two stocks are currently equal at =6.25% annual effective interest? (Answer to 4 decimal places/a percent to 2 decimal places).
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