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FastandFurious Company is issuing preferred stocks paying a dividend of $20 per year. Investors estimate that they can invest in this security with a 12%

FastandFurious Company is issuing preferred stocks paying a dividend of $20 per year. Investors estimate that they can invest in this security with a 12% rate of return. Coupon rates of similar securities are estimated to be 9%.

What maximum price would you be willing to put in this security?

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