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Preferred stock of Cornerstone Realty pays a stated dividend of $2.50 per share and is expected to pay this amount indefinitely. If preferred stock of

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Preferred stock of Cornerstone Realty pays a stated dividend of $2.50 per share and is expected to pay this amount indefinitely. If preferred stock of companies with similar risk to Cornerstone offer 12% return, which of the following would be expected to be closest to Cornerstone's preferred stock price? A. $12.50 B. $26.04 C. $16.66 D. $20.83

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