Question $7$

$10pts$

Farley Inc. has perpetual preferred stock outstanding that sells for $$33\mathrm{.}09$ per share and pays a dividend of $$2\mathrm{.}97$ at the end of each year. What is the required rate of return on Farley's preferred stock? State your answer as a percentage to $2$ decimal places. Do not include the $\%$ symbol.

Question $8$

$10pts$

What will be the nominal rate of return on a perpetual preferred stock with a $$90$ par value, a stated dividend of $8\mathrm{.}7\%$ of par, and a current market price of $$86\mathrm{.}95.$ State your answer as a percentage to $2$ decimal places. Do not include the $\%$ symbol.