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A preferred stock pays a dividend of $2.75 per year. If your discount rate is 7%,...

A preferred stock pays a dividend of $2.75 per year. If your discount rate is 7%, what is the preferred stock worth to you today?

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Answer #1

Ans $ 39.29

preferred stock worth = Dividend / Discount Rate

                                = 2.75 / 7%

                                 = $ 39.29

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