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Use the following information to answer the next 4 questions. Jumanji Corp. has 1 2 0 , 0 0 0 preferred shares which currently sell
Use the following information to answer the next questions.
Jumanji Corp. has preferred shares which currently sell for $ each and pay an annual dividend of $ They also have common shares which sell for $ per share and they just paid an annual dividend of $ per share. The common share dividends are expected to grow by each year in perpetuity. Jumanji has bonds with a face value of $ each. The bonds pay annual coupon and will mature in years and currently sell at of face value. The company's tax rate is
What is the required rate of return on the preferred shares?
a
b
c
d
e
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