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2. Mega Co. has issued a perpetual preferred stock. The issue will pay a dividend of 5% (based on a par value of $100) in
2. Mega Co. has issued a perpetual preferred stock. The issue will pay a dividend of 5% (based on a par value of $100) in perpetuity, starting 10 years from now. If investors required rate of return is 8%, what is the current value of these stocks?
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