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Ontario Transportation Inc

Question 12

Multiple Choice

Ontario Transportation Inc.has issued $2.5 million in preferred shares with a par value of $25 each and an annual dividend rate of 10 percent.The market value of the preferred shares is ____________ if the required rate of return is 8 percent.


A) $3,125,000
B) $2,500,000
C) $2,000,000
D) $34,380,000 million

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