Calculate the expected price in 4 years

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Based on the following information concerning Ford preferred stock,

Preferred dividend per share: $9

Beta: 0.85

Risk free rate: 5%

Market risk premium: 6%

Calculate the expected price in 4 years. You expect the risk free rate to decrease to 3% and the market risk premium to increase to 10% in 4 years.

a. $78.26

b. $76.43

c. $74.22

d. $80.65

Reference no: EM132079596

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