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Rebello's preferred stock pays a dividend of $1.30 per quarter, and it sells for $62.50 per share. What is its effective annual (not nominal) rate

Rebello's preferred stock pays a dividend of $1.30 per quarter, and it sells for $62.50 per share. What is its effective annual (not nominal) rate of return?

a. 8.32%

b. 8.49%

c. 9.42%

d. 4.16%

e. 8.58%

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