Assuming that you expect the risk free rate will increase

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Based on the following information concerning Ford preferred stock,

      Preferred dividend per share: $6

      Beta: 0.85

      Risk free rate: 5%

      Market risk premium: 6%

Calculate the expected price in 4 years, assuming that you expect the risk free rate will increase to 7% and the market risk premium will increase to 10%.

a. $42.11

b. $46.51

c. $44.98

d. $38.71

Reference no: EM131616168

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