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Lucky Jackson knows that one share of Grand Prix Enterprises preferred stock sells for $20 per share on the open market. From its annual reports,

Lucky Jackson knows that one share of Grand Prix Enterprises preferred stock sells for $20 per share on the open market. From its annual reports, he sees that Grand Prix pays an annual dividend of $1.75 per share on this preferred stock. What is the markets required rate of return on Grand Prixs stock?

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