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Timothy's firm has preferred stock outstanding that pays a current dividend of $4.00 per year and has a current price of $32.25. Currently, his preferred

Timothy's firm has preferred stock outstanding that pays a current dividend of $4.00 per year and has a current price of $32.25. Currently, his preferred stock makes up approximately 15% of his firm's long-term financing. What is the market required rate of return on Timothy's firm's preferred stock?

9.40%

12.4%

18.04%

9.00%

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