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What Is the Value of a Preferred Stock That Has

Question 63

Multiple Choice

What is the value of a preferred stock that has a par value of $100, a required rate of return of 11 percent, and pays a 7 percent annual dividend?

A) $63.64
B) $157.14
C) $909.09
D) $1,428.57
E) $2,500.00

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