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A preferred stock pays $8 of dividends a year. You have no reason to believe that this dividend payment will stop or change in the
A preferred stock pays $8 of dividends a year. You have no reason to believe that this dividend payment will stop or change in the future. If you would discount cash flows from this dividend at 20%, how much would this stock be to you?
A) $16
B) $40
C) $1.60
D) $80
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