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(Preferred stock expected return) You are considering the purchase of 100 shares of preferred stock. Your required return is 18 percent. If the stock is
(Preferred stock expected return) You are considering the purchase of 100 shares of preferred stock. Your required return is 18 percent. If the stock is currently selling for $36 and pays a dividend of $5.75, should you purchase the stock? a. What is the expected rate of return of the stock? % (Round to two decimal places.) b. If you have a required rate of return of 18%, you purchase the stock because the stock's expected rate of return is your required rate of return. (Select from the drop-down menus.)
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