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Jump Tech. just paid an annual preferred dividend of $ 2 and announced that next year the dividend will rise to $ 2 . 2

Jump Tech. just paid an annual preferred dividend of $2 and announced that next year the
dividend will rise to $2.20. If the market discount rate is 10% and Jump Tech. is expected to grow
as a company by 5%, what should the current price of a preferred share of Jump Tech stock?
a) $20
b) $22
c) $40
d) $44

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