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8. (Preferred stock valuation)Pioneer's preferred stock is selling for $29 in the market and pays a $3.50 annual dividend. a.If the market's required yield is

8. (Preferred stock valuation)Pioneer's preferred stock is selling for $29 in the market and pays a $3.50 annual dividend.

a.If the market's required yield is 11 percent, what is the value of the stock for that investor?

b.Should the investor acquire the stock?

The investor should not/should acquire the stock because it is currently underpriced/overpriced in the market.

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