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The current market value of the 500,000 preferred shares of Clumsy Sports Inc. is $25 million. If the shares pay a quarterly dividend of $1.25

The current market value of the 500,000 preferred shares of Clumsy Sports Inc. is $25 million. If the shares pay a quarterly dividend of $1.25 on a par value of $85 and the risk premium is 4.5 percent, what is the implied risk-free rate?

4.00%

4.50%

5.00%

5.50%

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