The market value and the book value of White Elephant's one million preferred shares are $40,000,000 and $35,000,000,respectively.The preferred shares pay an annual dividend of 8 percent.What is the risk premium associated with these shares if the risk-free rate is 3.25 percent?

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The Answer of The market value and the book value of White Elephant's one million preferred shares are $40,000,000 and $35,000,000,respectively.The preferred shares pay an annual dividend of 8 percent.What is the risk premium associated with these shares if the risk-free rate is 3.25 percent?

The Market Value and the Book Value of White Elephant's