Ch 09: End-of-Chapter Problems-Stocks and Their Valuation Back to Assignment Attempts 5. Problem 9.09 (Preferred Stock Returns) Keep the Highest/2 eBook Avondale Aeronautics has perpetual preferred stock outstanding with a par value of $100. The stock pays a quarterly dividend of $1.00 and its current price is $123. a. What is its nominal annual rate of return? Do not round intermediate calculations. Round your answer to two decimal places. b. What is its effective annual rate of return? Do not round intermediate calculations. Round your answer to two decimal places. Grade it Now Save & Continue Continue without saving