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A preferred stock pays a dividend $2.50 annually. You judge that a return of 5.5% annually is required to invest in this preferred stock? What is the maximum you would pay for this preferred stock?
a. $48.90
b. $41.80
c. $45.45
d. $22.20
1.for this and the next 2 questionsyour brother just graduated from high school and is seeking your advice as to
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