J&J Foods wants to issue 5.4 percent preferred stock with a stated liquidating value of $100 a share. The company has determined that stocks with similar characteristics provide a return of 8.2 percent. What should the offer price be?
A) $67.26
B) $61.38
C) $64.20
D) $65.85
E) $64.60
Correct Answer:
Verified
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