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Davis Gas & Electric issued preferred stock in 1985 that has a par value of $50. The stock pays a dividend of 7.875%. Assume that
Davis Gas & Electric issued preferred stock in 1985 that has a par value of $50. The stock pays a dividend of 7.875%. Assume that shares are currently selling for $62.50. What is the preferred stockholder's expected rate of return? A. 10.25% B. 5.02% C. 6.30% D. 7.88% Please show the work done to get the correct answer! Thank you
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