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If GM Series A preferred shares pay a $4.

If GM Series A preferred shares pay a $4.40 per share dividend in perpetuity, and are trading for $110 per share, what is the yield (equivalently, expected return; equivalently, discount rate) on those shares?

  1. 4.4%
  2. 5.5%
  3. 8.0%
  4. 4.0%
  5. 3.2%

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