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Universal Export's Preferred shares will pay their first dividend in five years. The dividend will be 6.5% on a $50-par value. Assume that the dividends
Universal Export's Preferred shares will pay their first dividend in five years. The dividend will be 6.5% on a $50-par value. Assume that the dividends will continue annually in perpetuity at that level. The required return of preferred shareholders is 9%. What is the fair price for the preferred shares?
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