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The 1.2 million preferred shares of Mighty Machines Ltd., which pay a dividend rate of 6.5 percent on a stated value of $40, are currently

The 1.2 million preferred shares of Mighty Machines Ltd., which pay a dividend rate of 6.5 percent on a stated value of $40, are currently worth $42,000,000. What is the risk premium associated with these preferred shares if the risk-free rate is 4.25 percent?

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