Yankee Athletic Club has preferred stock with a par value of $60 and an annual 8% cumulative dividend. Given the following prices for the prefermed stock, what is each investor seeking for his or her return?
a. Alex is willing to pay $40. b. Derek is willing to pay $30. c. Marcia is willing to pay $15. d. Johnny is willing to pay $5. a. If Alex is willing to pay $40 for the preferred stock, what rate of return is he seeking? __% (Round to two decimal places)