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Nick's Enchiladas has preferred stock outstanding that pays a dividend of $4 at the end of each year. The preferred sells for $30 a share.
Nick's Enchiladas has preferred stock outstanding that pays a dividend of $4 at the end of each year. The preferred sells for $30 a share. What is the stock's required rate of return (assume the market is in equilibrium with the required return equal to the expected return)?
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