P7-12 (similar to) Yankee Athletic Club has preferred stock with a par value of $100 and an annual 5% cumulative dividend. Given the following prices for the preferred stock, what is each investor...

Extracted text: P7-12 (similar to) Yankee Athletic Club has preferred stock with a par value of $100 and an annual 5% cumulative dividend. Given the following prices for the preferred stock, what is each investor seeking for his or her return? a. Alex is willing to pay $40. b. Derek is willing to pay $25. c. Marcia is willing to pay $20. d. Johnny is willing to pay $10. a. If Alex is willing to pay $40 for the preferred stock, what rate of return is he seeking? % (Round to two decimal places)