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Risk premium associated with these preferred shares

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Reference no: EM131069914

The 1.2 million preferred shares of Mighty Machines, which pay a dividend rate of 6.5 percent on a stated value of $40, are currently worth $42,000,000.

What is the risk premium associated with these preferred shares if the risk free rate is 4.25 percent?

Reference no: EM131069914

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