Question
The Jones Company has decided to undertake a large project. Consequently, there is a need for additional funds. The financial manager plans to issue
The Jones Company has decided to undertake a large project. Consequently, there is a need for additional funds. The financial manager plans to issue preferred stock with a perpetual annual dividend of $2.7 per share and a par value of $78. If the required return on this stock is currently 9 percent, what should be the stock's market value?
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