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(Preferred stock valuation)Kendra Corporation's preferred shares are trading for $26 in the market and pay a $3.90 annual dividend. Assume that the market's required yield

(Preferred stock valuation)Kendra Corporation's preferred shares are trading for $26 in the market and pay a $3.90 annual dividend. Assume that the market's required yield is 13 percent.

a.What is the stock's value to you, the investor?

b.Should you purchase the stock?

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