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Investors require a return of 7.8% per year to hold a perpetual preferred stock. The preferred stock has a par value of $25 per share
Investors require a return of 7.8% per year to hold a perpetual preferred stock. The preferred stock has a par value of $25 per share and it pays an annual dividend of $1.75 per share. What is its intrinsic value per share? 1) $20.89 2) $18.92 3) $21.85 4) $19.43 5) $22.44
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