A preferred stock pays a dividend 250 annually you judge

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A preferred stock pays a dividend $2.50 annually. You judge that a return of 5.5% annually is required to invest in this preferred stock? What is the maximum you would pay for this preferred stock?

a. $48.90

b. $41.80

c. $45.45

d. $22.20

Reference no: EM13567360

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