What is the intrinsic value of this preferred stock

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Sunny's BBQ Company recently issued $50.00 par-value preferred stock that pays an annual dividend of $16.00. Analysts estimate that the stock has a beta of 0.96. The current risk-free rate is 2.00% and the market risk premium (RM - RF) is 8.50%. Assuming that CAPM holds, what is the intrinsic value of this preferred stock?

Reference no: EM131085541

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