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Aukey Inc. pays a dividend of $1.50 on its preferred stock every three quarters. The next preferred stock dividend is expected exactly three quarters from
Aukey Inc. pays a dividend of $1.50 on its preferred stock every three quarters. The next preferred stock dividend is expected exactly three quarters from now. If the required rate return on Aukeys preferred stock is 12%, compounded quarterly (r4=12%), what is the intrinsic value of one of its preferred stock? (Tip: make sure your are using the correct effective rate to discount the cash flows.)
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