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Carby Hardware has an outstanding issue of perpetual preferred stock with an annual dividend of $5.20 per share. If the required return on this preferred

Carby Hardware has an outstanding issue of perpetual preferred stock with an annual dividend of $5.20 per share. If the required return on this preferred stock is 6.5%, at what price should the preferred stock sell?

Select the correct answer.

a. $80.00

b. $79.66

c. $81.02

d. $80.34

e. $80.68

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