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3. An investor is considering purchasing shares of preferred stock that pays a dividend of $3 per share. The market price is $40 and the

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3. An investor is considering purchasing shares of preferred stock that pays a dividend of $3 per share. The market price is $40 and the investor requires a 10% annual rate of return. [15 Points] (a) Cakculate the net present value. (b) Explain whether the investor should purchase this preferred stock? () Calculate the rate of return earned if shares are purchased at a market price of $25

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