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Zag Inc. just issued new shares of preferred stock that will pay an annual dividend of $5 per share in perpetuity beginning three years from

Zag Inc. just issued new shares of preferred stock that will pay an annual dividend of $5 per share in perpetuity beginning three years from today. the market requires a return of 8% on this investment. Which of the following values is closest to the value of the preferred shares today?

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