Question $14(1$ point$)$

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Bruner Aeronautics has perpetual preferred stock outstanding with a par value of $$100.$ The stock pays a quarterly dividend of $$0\mathrm{.}60,$ and its current price is $$103\mathrm{.}00.$

a$.$ What is its nominal annual rate of return?

b$.$ What is its effective annual rate of return?

a$)2\mathrm{.}3301\%$;

b$)2\mathrm{.}3505\%$

a$)0\mathrm{.}6000\%$;

b$)0\mathrm{.}6014\%$

a$)0\mathrm{.}5825\%$;

b$)0\mathrm{.}5838\%$

a$)0\mathrm{.}5825\%$;

b$)2\mathrm{.}3505\%$

a$)0\mathrm{.}5825\%$;

b$)2\mathrm{.}3301\%$