3. Minneapolis Pipelines pays an annual dividend of $0.80 per share on its preferred stock. The stock
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3. Minneapolis Pipelines pays an annual dividend of $0.80 per share on its preferred stock. The stock currently sells for $12 per share. Maplewood Chemicals is considering investing idle cash in either Minneapolis's preferred stock or a bond yielding 9.8%. If Maplewood's marginal tax rate is 34%, which investment is more attractive?
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Investments
ISBN: 9788120321014
6th Edition
Authors: William F. Sharpe, Gordon J. Alexander, Jeffery V. Bailey
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