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ABC preferred stock pays a $3 annual dividend that will last forever. The current market rate of return is 8% for this type of investment.

ABC preferred stock pays a $3 annual dividend that will last forever. The current market rate of return is 8% for this type of investment. What is one share of ABC preferred stock worth?

a. $30.00

b. $38.50

c. $37.50

d. $32.50

e. $24.00

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