Farley Inc. has perpetual preferred stock outstanding that sells for $40 a share and pays a dividend of $4.50 at the end of each year. What is the required rate of return? Round your answer to two decimal places.

Problem 9.06 (Preferred Stock Valuation) + Question 13 of 20 Check My Work (3 remaining) eBook Farley Inc. has perpetual preferred stock outstanding that sells for $40 a share and pays a dividend of $4.50 at the end of each year. What is the required rate of return? Round your answer to two decimal places. % Check My Work (3 remaining)