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Mogul Industries, Inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $7.50 per share. If the required return on this

Mogul Industries, Inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $7.50 per share. If the required return on this preferred stock is 6.5%, the price of Mogul's preferred stock should be closest to:

a.

$106.95

b.

$109.69

c.

$115.38

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