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A. Suppose that a preferred stock pays a constant dividend of AED 5 per year, then use the zerogrowth in dividends model to calculate the

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A. Suppose that a preferred stock pays a constant dividend of AED 5 per year, then use the zerogrowth in dividends model to calculate the present value of the preferred stock given that the required rate of return rs (discount rate) is 8 percent. (2 Marks)

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