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16. If a Belmonte Company preferred stock has a residual value of $ 5, a dividend rate of 1.25% and a required rate of return

16. If a Belmonte Company preferred stock has a residual value of $ 5, a dividend rate of 1.25% and a required rate of return of 5%. How much should this preferred action be worth?

Possible Answers:

1.00

1.75

2.25

1.25

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