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Please explain and show work. Allstate preferred offers preferred dividend of 7.52% based on a $10 par (i.e., you receive the dividend as a percent
Please explain and show work.
Allstate preferred offers preferred dividend of 7.52% based on a $10 par (i.e., you receive the dividend as a percent of par). This dividend will be paid in perpetuity stating seven years from now. If the market requires a 9% rate of return, how much does a share of preferred stock cost today?
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