Preferred stock returns
Arondale Aeronautics has perpetual preferred stock outstanding with a par value of $100. The stock pays a quarterly dividend of $2, and its current price is $84.
What is its nominal annual rate of return? Do not round your intermediate calculations. Round your answer to two decimal places.
%
What is its effective annual rate of return? Do not round your intermediate calculations. Round your answer to two decimal places.
%