Connor Publishing's preferred stock pays a dividend of $1.00 per quarter, and it sells for $55.00 per share.What is its effective annual (not nominal) rate of return?
A) 6.62%
B) 6.82%
C) 7.03%
D) 7.25%
E) 7.47%

Question

Quizplus · Accepted Answer

The Answer of Connor Publishing's preferred stock pays a dividend of $1.00 per quarter, and it sells for $55.00 per share.What is its effective annual (not nominal) rate of return?
A) 6.62%
B) 6.82%
C) 7.03%
D) 7.25%
E) 7.47%

Connor Publishing's Preferred Stock Pays a Dividend of $1