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Example 7: Pricing Preferred Stock (Please use the formula way and can you please show what the formula to use) ----------------------------------------------------------------------------------------------------------------------------- The Mid-American Utility Companys
Example 7: Pricing Preferred Stock
(Please use the formula way and can you please show what the formula to use)
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The Mid-American Utility Companys preferred stock pays an annual dividend of 8% per year on its par value of $60.
If you want to earn 10% of your investment, how much should you offer for this preferred stock?
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