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AA Preferred Products has issued preferred stock with an annual dividend of $5.60 that will be paid in perpetuity. a. If the discount rate is

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AA Preferred Products has issued preferred stock with an annual dividend of $5.60 that will be paid in perpetuity. a. If the discount rate is 10%, at what price should the preferred sell? (Round your answer to 2 decimal places.) Current price b. At what price should the stock sell 1 year from now? (Round your answer to 2 decimal places.) Future price c. What are the (1) the dividend yield; (I) the capital gains yield: (i) the expected rate of return of the stock? (Enter your answers as a whole percent.) C () () Dividend yield Capital gains yield Expected rate of return AL Balat My The

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