A company's preferred shares pay a $1.25 dividend every three months in perpetuity. What is the fair market value of the shares just after payment of a dividend if the rate of return required by the market on shares of similar risk is:
a) 5% compounded quarterly?
b) 6% compounded quarterly?

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The Answer of A company's preferred shares pay a $1.25 dividend every three months in perpetuity. What is the fair market value of the shares just after payment of a dividend if the rate of return required by the market on shares of similar risk is:
a) 5% compounded quarterly?
b) 6% compounded quarterly?

A Company's Preferred Shares Pay a $1