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    Contemporary Financial Management Study Set 2
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    Exam 7: Fixed Income Securities: Characteristics and Valuation
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    What Is the Value of an MDI $2
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What Is the Value of an MDI $2

Question 52

Question 52

Multiple Choice

What is the value of an MDI $2.67 perpetual preferred stock to an investor who requires a 7% annual rate of return? Assume the par value is $60.00.


A) $85.71
B) $38.14
C) $59.33
D) $60.00

Correct Answer:

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