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28.You would like to buy a preferred share with a stated liquidation value of $25 and a coupon rate of 8% (paid every year indefinitely).

28.You would like to buy a preferred share with a stated liquidation value of $25 and a coupon rate of 8% (paid every year indefinitely). If you buy it today, you will receive the next dividend payment immediately. What is the appropriate price for this share?

Select one:

a. $314.50

b. $312.50

c. $200.00

d. It depends on the yield to maturity.

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