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What is the required rate of return on a preferred stock with a $50 par value, a stated annual dividend of 7% of par ,
What is the required rate of return on a preferred stock with a $50 par value, a stated annual dividend of 7% of par , and a current market price of (a) $30, (b) $40, (c) $50, and (d) $70 ( assume the market is in equilibrium with the required return to the expected return)?
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