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You are considering a preferred stock that makes a dividend payment of $77 per year, and the current discount rate is 6.7 percent. What is
You are considering a preferred stock that makes a dividend payment of $77 per year, and the current discount rate is 6.7 percent. What is the most you are willing to pay for each share of this preferred stock, rounded to the nearest dollar? On your worksheet, show your manual calculations OR show the data entries you made on your financial calculator. Either way, for partial credit, at least show the formula you would use to solve this problem.
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