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HUU penulll D
HUU penulll D. maturity payment Clear my choice Question 33 Not yet answered Points out of 1 Flag question A share of preferred stock has a par value of $100 and pays a dividend of $6 If you need to earn a 13% return on your investment, how much would you be willing to pay for this stock? Select one: O a. $0.78 Ob. $46.15 Oc$13.00 O d. 516.67 Oe. None of the answers provided are correct eston 34 LD wer saved The following relates to Long Drive Corporation: ats out of 1 lag question Capital Structure:
Expert Solution
I would be willing to pay $46.15
As we want to earn 13% on our investment and we know we will get a $6 dividend so our value of investment would
6/0.13 = $46.15
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