Suppose a preferred stock pays a quarterly dividend of $2 per share. The next dividend comes in

Question:

Suppose a preferred stock pays a quarterly of $2 per share. The next comes in exactly one-fourth of a year. If the price of the stock is $80, what is the effective annual rate of return that the stock offers investors?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...