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A preferred stock will pay a dividend of 100 today. The stock also provides that future dividends will increase at the rate of inflation. The

A preferred stock will pay a dividend of 100 today. The stock also provides that future dividends will increase at the rate of inflation. The stock is purchased to yield 8% and assuming an inflation rate of 3%. Calculate the price of the stock today (before payment of the dividend).

Answer = 2160

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