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Kendra Corporation's preferred shares are trading for $27 in the market and pay a $4.30 annual dividend. Assume that the market's required yield is 15

Kendra Corporation's preferred shares are trading for

$27

in the market and pay a

$4.30

annual dividend. Assume that the market's required yield is

percent.

a.What is the stock's value to you, the investor?

b.Should you purchase the stock?

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