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How Do I Calculate The Effective Rate Of Return?
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How do I calculate the effective annual return of a preferred stock investment upon a call?
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(A) Add up the total income you've earned (dividends plus capital gain) and divide by your invested amount
(B) Since the call price is $25 per share, the Effective Annual Return is the same as the annual dividend rate
(C) Calculate the quarterly internal rate of return, then compound the result for four quarters
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