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Zoltan Technologies has both preferred stock and common stock. A. Their common stock currently sells for $89.30 and pays a dividend of $0.90 per year
Zoltan Technologies has both preferred stock and common stock.
A. Their common stock currently sells for $89.30 and pays a dividend of $0.90 per year with a growth rate of 5.3% per year. What is the required rate of return for their common stock?
B. If their preferred stock pays a dividend of $32 per year and the discount rate is 3%, what is the value of this preferred stock?
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