Yankee Athletic Club has preferred stock with a par value of $100 and an annual 6% cumulative dividend. Given the following prices for the preferred stock, what is each investor seeking for his or her return?

a.Alex is willing to pay $40.

b.Derek is willing to pay $25.

c.Marcia is willing to pay $15.

d.Johnny is willing to pay $10.

If Alex is willing to pay (A-D) for the preferred stock, what rate of return is he seeking?( find each one)