Question: Suppose you purchased a $50 par value preferred stock. The stock's price is $48 per share and it pays a 9.8% dividend rate per year.

Suppose you purchased a $50 par value preferred stock. The stock's price is $48 per share and it pays a 9.8% dividend rate per year. Investors require a 13% rate of return on the stock and the marginal tax rate is 34%. What is the expected return on this preferred stock? O 10.2% O 6.74% O 11.3% O 10.8% 8.9%

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