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You observe the following preferred stock ( a perpetuity ) in the market: You can pay $ 1 0 , 0 0 0 , 0

You observe the following preferred stock

(

a perpetuity

)

in the market: You can pay $

10, 000, 000

today for the right to receive $

750, 000

annually starting in a year. What is the implied discount rate expressed in percentages?

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