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5. R&R Inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $9.50 per share. If the required return on this

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5. R&R Inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $9.50 per share. If the required return on this preferred stock is 6.5%, at what price should the stock sell? * O a) $104.27 b) $106.95 c) $109.69 d) $146.15 e) None of the above 6. R&R Company is expected to pay a dividend of $4 next period, and dividends are expected to grow at 6% per year. If the required return is 16% and the current price (PO) is 40$, what is the stock price at year 4 (P4)? * O a) $45.1 b) $48.2 O c) $50.5 d) $52.3 o e) None of the above

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