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ALP IncHas Decided to Issue Preferred Stock with an Annual Dividend

Question 62

Multiple Choice

ALP Inc.has decided to issue preferred stock with an annual dividend of $5 a share.Similar stocks are currently yielding 14 percent.What price should the firm expect to receive for each new share issued?


A) $35.71
B) $33.08
C) $44.92
D) $40.71
E) $38.97

Correct Answer:

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