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AlwaysAround Co

Question 37

Multiple Choice

AlwaysAround Co.has just issued a preferred stock that pays an annual $4 dividend.The first dividend will be received one year from today.If the required rate of return on this stock is 5%,then what is the price of the stock?


A) $3.81
B) $4.20
C) $80.00
D) none of the above

Correct Answer:

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