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Problem 9-6 Preferred stock valuation Farley Inc. has perpetual preferred stock outstanding that sells for $36.00 a share and pays a dividend of $4.00 at

Problem 9-6 Preferred stock valuation

Farley Inc. has perpetual preferred stock outstanding that sells for $36.00 a share and pays a dividend of $4.00 at the end of each year. What is the required rate of return? Round your answer to two decimal places.

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