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A share of preferred stock pays an annual dividend of $10 per share. If investors require an 10 percent rate of return, what should be
A share of preferred stock pays an annual dividend of $10 per share. If investors require an 10 percent rate of return, what should be the price of this preferred stock?
A) 57.25
B) 50.00
C) 62.50
D) 100.00
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