How determine what is the value of the stock

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Question 1: You are looking to buy a preferred stock of a bank that pays a dividend of $2.00 every quarter. If the discount rate (required rate of return) for such cash flows at 8%, what is the value of this stock.

Option A. $25.00

Option B. $0.16

Option C. $300

Option D. $100

Reference no: EM132592552

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