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Johnston Corporation is growing at a steady rate of 6 percent annually. It has common shares and non-participating preferred shares outstanding. The cost of preferred

Johnston Corporation is growing at a steady rate of 6 percent annually. It has common shares and non-participating preferred shares outstanding. The cost of preferred shares (rps) is 8 percent. The par value of the preferred stock is $120 and the shares have a stated dividend of 10 percent of par. 


What is the market value of preferred stock?


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