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A company has preferred stock outstanding. This stock pays a semiannual dividend of $1.25. If the next dividend is paid six months from now and
A company has preferred stock outstanding. This stock pays a semiannual dividend of $1.25. If the next dividend is paid six months from now and the annual required return is 10%, what should be the value of the preferred stock?
As I try to learn from these questions, please, if at all possible, include the long-hand equation (not Excel) so that I may work through it myself. Thank you.
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