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Rebello's preferred stock pays a dividend of $1.25 per quarter, and it sells for $45.00 per share. What is its effective annual (not nominal) rate

Rebello's preferred stock pays a dividend of $1.25 per quarter, and it sells for $45.00 per share. What is its effective annual (not nominal) rate of return?

a. 11.58%

b. 13.10%

c. 5.56%

d. 11.11%

e. 11.42%

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