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Isbele Inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $6.50 per share. If the cost of this preferred stock
Isbele Inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $6.50 per share. If the cost of this preferred stock (required rate of return) is 8.5%, at what price should the stock sell? (Assume the dividend is just paid.)
The answer is 76.47, but I want to know how it's solved. If you can show how you got the answer that would be great!
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