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40) A) A company just issued preferred stock that will pay a constant dividend...

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Finance

40)

A) A company just issued preferred stock that will pay a constant dividend of $4.87. The price of the preferred stock is $50 a share. What is the required return by preferred shareholders (as a percentage)?

B) A company just paid a dividend of $1.50 and anticipates growing its dividend at a rate of 5% per year indefinitely. What will be the dividend in 20 years?

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