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Consider a $50 par value share of preferred stock with a 4% dividend rate (paid quarterly, first dividend one quarter from today) and a 15-year
Consider a $50 par value share of preferred stock with a 4% dividend rate (paid quarterly, first dividend one quarter from today) and a 15-year life. If investors have a required rate of return of 14% (EAR), what should be today's price of one share?
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