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Pioneer's preferred stock is selling for $60 in the market and pays a $4.80 annual dividend. A. If the market's required yield is 7 percent,

Pioneer's preferred stock is selling for $60 in the market and pays a $4.80 annual dividend.

A. If the market's required yield is 7 percent, what is the value of the stock for that investor?

B. The investor ( Should or Should NOT) acquire the stock because it is currently (underpriced or overpriced) in the market.

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