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XYZ Corp. just issued some new preferred stock. The issue will pay a $3 quarterly dividend in perpetuity, beginning 12 years from now. The market
XYZ Corp. just issued some new preferred stock. The issue will pay a $3 quarterly dividend in perpetuity, beginning 12 years from now. The market requires a 4.8% return on this investment. How much does a share of preferred stock cost today? How much will a share of preferred stock cost six years from today? How much will a share of preferred stock cost 20 years from today?
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