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Preferred Stock Rate of Return Nick's Enchiladas has preferred stock outstanding that pays a dividend of $4 at the end of each year. The preferred

Preferred Stock Rate of Return

Nick's Enchiladas has preferred stock outstanding that pays a dividend of $4 at the end of each year. The preferred sells for $60 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)? Round the answer to two decimal places.

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