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Are there any similarities between the two prices

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Question: Sara-J Co. has a preferred stock outstanding that pays annual dividends of $3.50 a share. At what price would this stock be trading if market yields were 7.5%? Use one of the dividend valuation models to price this stock, assuming you have a 7.5% required rate of return. Are there any similarities between the two prices? Explain.

Reference no: EM131627422

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