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(Preferred stock expected return) You are planning to purchase 100 shares of preferred stock and must choose between Stock A and Stock B. Stock A
(Preferred stock expected return) You are planning to purchase 100 shares of preferred stock and must choose between Stock A and Stock B. Stock A pays an annual dividend of $4.50 and is currently selling for $35. Stock B pays an annual dividend of $4.25 and is selling for $36. If your required return is 12 percent, which stock should you choose? What is the expected return of Stock A? % (Round to two decimal places.)
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