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Carby Hardware has an outstanding issue of perpetual preferred stock with an annual dividend of $8.40 per share. If the required return on this preferred

Carby Hardware has an outstanding issue of perpetual preferred stock with an annual dividend of $8.40 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. $131.30
b. $129.92
c. $130.61
d. $129.23
e. $128.54

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