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J&J Foods wants to issue some 6.5 percent preferred stock that has a stated liquidating value of $100 a share (the annual dividend is 6.5%

J&J Foods wants to issue some 6.5 percent preferred stock that has a stated liquidating value of $100 a share (the annual dividend is 6.5% of the stated liquidating value). The company has determined that stocks with similar characteristics provide a return of 9.5 percent. What should the offer price be?

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