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  3. avondale aeronautics has perpetual preferred stock

Avondale Aeronautics has perpetual preferred stock outstanding with a par value of $100. The stock...

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Accounting

Avondale Aeronautics has perpetual preferred stock outstanding with a par value of $100. The stock pays a quarterly dividend of $2.00 and its current price is $85.

  1. What is its nominal annual rate of return? Do not round intermediate calculations. Round your answer to two decimal places. %
  2. What is its effective annual rate of return? Do not round intermediate calculations. Round your answer to two decimal places.

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