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Johnston Corporation is growing at a constant rate of 6 percent per year. It has both common stock and non-participating preferred stock outstanding. The required

Johnston Corporation is growing at a constant rate of 6 percent per year. It has both common stock and non-participating preferred stock outstanding. The required rate of return on preferred stock (cost of preferred stock) is 8 percent. The par (stated) value per share of the preferred stock is $120, and the stock has a stated dividend of 10 percent of par. What is the estimated fair market price per share per share of the preferred stock?

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