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Nirvana Pillows lnc.'s preferred stock will pay its rst quarterly dividend 5 years from today. The expected dividend is $6.84. If your next best investment

Nirvana Pillows lnc.'s preferred stock will pay its ﬁrst quarterly dividend 5 years from today. The expected dividend is $6.84. If your next best investment of similar risk has an EAR of 7.8 percent.

What would you be willing to pay for a share of Nirvana today?

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