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Molen 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

Molen 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 7.5%, at what price should the stock sell?

a. $94.27

b. $96.95

c. $100.00

d. $112.50

e. $115.38

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