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3. Assume a share of preferred stock pays an annual dividend of $12, the first dividend is in exactly 12 months. The preferre
• Use Par Value =1000, if not provided. Round your answer to two decimal places as showw below: your answer is reported as %:

the second picture is just a guidline for the entire assignment it was the instructions at the begining.
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Answer #1

Preferred's yield = Annual dividend / current price

7% = $12 / current price

Current price = $12 / 7%

Current price = $171.43

Preferred's price = $171.43

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