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Suppose you own 300 shares of CDEs preferred stock. The fair price of RM100 preferred share is RM86 each and pays a dividend of RM4

Suppose you own 300 shares of CDEs preferred stock. The fair price of RM100 preferred share is RM86 each and pays a dividend of RM4 per share on each quarter.

1. If you require 15 percent return, what is the intrinsic value of the preferred stock?

2. What is the nominal annual rate of return?

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