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Preferred stock returns Arondale Aeronautics has perpetual preferred stock outstanding with a par value of $100. The stock pays a quarterly dividend of $2, and

Preferred stock returns

Arondale Aeronautics has perpetual preferred stock outstanding with a par value of $100. The stock pays a quarterly dividend of $2, and its current price is $84.

What is its nominal annual rate of return? Do not round your intermediate calculations. Round your answer to two decimal places. %

What is its effective annual rate of return? Do not round your intermediate calculations. Round your answer to two decimal places. %

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