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Tronic Technology

Tronic Technology has preferred stock outstanding that pays a $4.50 annual dividend. It has a price of $52. The required rate of return is 10%. The stock originally sold for $39. What is the required rate of return (yield) on the preferred stock?

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Rate of Return (Yield)
Tronic Technology has preferred stock outstanding ...

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This solution is comprised of a detailed explanation to answer what is the required rate of return (yield) on the preferred stock.

$2.19