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3. MYG Corporation just issued some new preferred stock. The issue will pay an annual dividend of $2.50 in perpetuity, beginning 4 years from now.

3. MYG Corporation just issued some new preferred stock. The issue will pay an annual dividend of $2.50 in perpetuity, beginning 4 years from now. If the market requires a return of 5 percent on this investment, how much does a share of preferred stock cost today? (6 marks)

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