Confectioners' Corner wants to offer some preferred stock that pays an annual dividend of $4.50 a share. The company has determined that stocks with similar characteristics provide an 11% rate of return. What price should Confectioner's expect to receive per share for this stock offering?
A) $38.87
B) $40.54
C) $40.91
D) $45.50
E) $49.50
Correct Answer:
Verified
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