Question: Suppose a preferred stock with a $25 par value has a current price of $20 and pays an annual fixed dividend of $3. What is

Suppose a preferred stock with a $25 par value has a current price of $20 and pays an annual fixed dividend of $3. What is the required rate of return of this preferred stock?

A. 1.2%

B. 1.5%

C. 12%

D. 15%

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