Perpetuities A prestigious investment bank designed a new security that pays a quarterly dividend of $4.50 in

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Perpetuities A prestigious investment bank designed a new security that pays a quarterly dividend of $4.50 in perpetuity. The first dividend occurs one quarter from today. What is the price of the security if the stated annual interest rate is 6.5 percent, compounded quarterly?

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Corporate Finance With Connect Access Card

ISBN: 978-1259672484

10th Edition

Authors: Stephen Ross ,Randolph Westerfield ,Jeffrey Jaffe

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