Manic Corporation issued 400,000 preferred shares with a book value of $10 million three years ago.The preferred shares pay an annual dividend of $2.What is the required return if the current market value of these preferred shares is $9.5 million?
A) 8.42%
B) 8.00%
C) 5.26%
D) 4.21%
Correct Answer:
Verified
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