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Assume a preferred stock pays dividends at the rate of 5% with the face value of $100. The appropriate required rate of return is 8%.
Assume a preferred stock pays dividends at the rate of 5% with the face value of $100. The appropriate required rate of return is 8%. What is the value today of a share of this stock? Present your answer as a whole number to two decimals (including the \$ symbol), e.g. \$87.65 (25\% marks will be deducted if the $ symbol is not provided)
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