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Investors are willing to pay $35.00 for a preferred share that recently paid an annual dividend of $1.85. The firm is expected to experience growth
Investors are willing to pay $35.00 for a preferred share that recently paid an annual dividend of $1.85. The firm is expected to experience growth of 5.00% per year and it's combined state + federal tax rate is 25%. How much would an investors earn on these shares?
Select one: a. 5.29% b. 5.55% c. 5.00% d. 10.29%
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