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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?

Select one:

a. $37.50

b. $30.00

c. $32.50

d. $24.00

e. $38.50

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