11. Problem 9.09 (Preferred Stock Returns) eBook Arondale Aeronautics has perpetual preferred stock outstanding with a par value of $100. The stock pays a quarterly dividend of $2.00, and its current...

Extracted text: 11. Problem 9.09 (Preferred Stock Returns) eBook Arondale 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 $92. a. What is its nominal annual rate of return? Do not round intermediate calculations. Round your answer to two decimal places. % b. What is its effective annual rate of return? Do not round intermediate calculations. Round your answer to two decimal places.