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You are considering buying preferred stock from Bank of America. You see from their dividend history that their preferred shares have paid a dividend of
You are considering buying preferred stock from Bank of America. You see from their dividend history that their preferred shares have paid a dividend of $1.00 per share every 6 months for the last 20 years. Further, you estimate that investors required rate of return for Bank of America preferred stock is 14%. Given this information, calculate the intrinsic value of Bank of Americas preferred stock
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