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You are trying to value a preferred share with the following characteristics. It has a $25 face value and a 4% annual dividend, paid quarterly.

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You are trying to value a preferred share with the following characteristics. It has a $25 face value and a 4% annual dividend, paid quarterly. The market currently requires a 5% yield to hold assets of this risk. What price should this share sell for? Select one: a. $16.67 X Incorrect b. $17.10 C. $18.80 d. $20.00 e. $21.04

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