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DD/PA is a preferred stock that last traded at $82. It has a $0.875 quarterly dividend. You need to earn at least 5% per year

DD/PA is a preferred stock that last traded at $82. It has a $0.875quarterlydividend. You need to earn at least 5% per year to invest in this stock.

  1. Assume the stock is offered at $82. Would you buy it? Why/why not?
  2. What annual return,r,is implied by a price of $82?

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