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29) Preferred stock for Company Massive pays a $1.20 annual dividend. You estimate a required rate of return on Company Massive's preferred stock of 4.25%.

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29) Preferred stock for Company Massive pays a $1.20 annual dividend. You estimate a required rate of return on Company Massive's preferred stock of 4.25%. a) What do you estimate to be the current share price? [6 pts] b) You observe Company Massive's preferred stock selling for $20.50. Should you buy the stock? Why? [2 pts]

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