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Assume Caterpillar (CAT) has preferred stock which pays an annual dividend of $2.50 per share. What is one share of this stock worth to you

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Assume Caterpillar (CAT) has preferred stock which pays an annual dividend of $2.50 per share. What is one share of this stock worth to you today if you require a 6% rate of return? a) $62.50 b) $31.25 O c) $2.60 d) $50.00 e) $41.67

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