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A company announced it would skip its preferred share dividend due one year from now, but pledged to reinstate this dividend due two years from
A company announced it would skip its preferred share dividend due one year from now, but pledged to reinstate this dividend due two years from now. If investors require an 8% return for the preferred shares and the dividend is $5.00 per share, what is the price of the stock after this announcement?
$50.00
$45.45
$62.50
$57.87
$53.58
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