Butterup's 'N More wants to offer some preferred stock that pays an annual dividend of $2.00 a share forever.The company has determined that stocks with similar characteristics provide a 10% rate of return.What price should Butterup's expect to receive per share for this stock offering?
A) $18.35
B) $20.00
C) $21.80
D) $22.22
E) $24.22
Correct Answer:
Verified
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