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(Preferred stock expected return) You are considering the purchase of 100 shares of preferred stock. Your required return is 10 percent. If the stock is

(Preferred stock expected return) You are considering the purchase of 100 shares of preferred stock. Your required return is 10 percent. If the stock is currently selling for $50 and pays a dividend of $ 4.25, should you purchase the stock? What is the expected rate of return of the stock?

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