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Alpha Corporation is issuing some new preferred shares. The preferred stock will pay a perpetual dividend of $12.00 per year starting 7 years from now.
Alpha Corporation is issuing some new preferred shares. The preferred stock will pay a perpetual dividend of $12.00 per year starting 7 years from now. The Beta Corporation is issuing preferred shares that pay a dividend of 10 percent on a $60 par value of the preferred shares. Both preferred shares require a return of 8 percent. Which preferred share will sell for a higher price in the market today? Show your work.
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