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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 12% of par, and
What is the required rate of return on a preferred stock with a $50 par value, a stated annual dividend of 12% of par, and a current market price of (a) $21, (b) $31, (c) $40, and (d) $58 (assume the market is in equilibrium with the required return equal to the expected return)? Do not round intermediate calculations. Round the answers to two decimal places.
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