### What is the value of the preferred stock today

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Sacramento Light & Power issued preferred stock in 1998 that had a par value of \$85. The preferred stock pays a dividend of 5.75%. Investors require a rate of return of 6.50% today on this stock. What is the value of the preferred stock today? Round to the nearest \$1. Answer \$100 \$85 \$75 \$16

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