What will be the nominal rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 8 percent of par, and a current market price of

(a) $60
(b) $80
(c) $100
(d) $140

Nominal rate of return(R) is equal to dividend/market price

so in the first case R=0.08*100/60= 13.33%