Problem 7-8 Valuing Preferred Stock [LO 1]

Rabie, Inc., has an issue of preferred stock outstanding that pays a $5.50 dividend every year, in perpetuity.

Required:

If this issue currently sells for $80.35 per share, what is the required return? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Required return

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