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4. ABC Company has preferred stock outstanding with a par value of $40 per share that pays an annual dividend equal to 10%. a. If
4. ABC Company has preferred stock outstanding with a par value of $40 per share that pays an annual dividend equal to 10%. a. If investors who purchase similar investments require a 7 percent return, what is the market value of ABC Companys preferred stock? b. What would be the market value of the stock if investors require a 12 percent return?
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