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A company had issued a fixed rate perpetual preffered stock three years ago and placed it privately with institutional investors. The stock was issued at
A company had issued a fixed rate perpetual preffered stock three years ago and placed it privately with institutional investors. The stock was issued at $25 per share with a $1.75 dividend. If the company were to issue preferred stock today, the yield would be 6.5 percent. Dividends are not tax deductible so there is no adjustment for taxes. The stock's current value is?
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