An issue of preferred stock is paying an annual dividend of $5. - 4696

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An issue of preferred stock is paying an annual dividend of $5. The growth rate for the firm's common stock is 14%. What is the preferred stock price if the required rate of return is 11%? 

A) $45.45 

B) $41.67 

C) $35.71 

D) none of the above 

 

Answer: A Difficulty: Easy Type: Application 

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