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Preferred Stock Valuation Nicks Enchiladas Incorporated has preferred stock outstanding that pays a dividend of $5 at the end of each year. The preferred sells
Preferred Stock Valuation Nicks Enchiladas Incorporated has preferred stock outstanding that pays a dividend of $5 at the end of each year. The preferred sells for $50 a share. What is the stocks required rate of return?
Question: Why is the selling price per share of preferred stock $60 and not $50?
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