Company is issuing preferred stock

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Reference no: EM13871229

A company is issuing preferred stock that will pay a 4% dividend but will not pay the first dividend until 6 years from now. If the required return is 10%, what is the value of the stock today? Assume a par value of $100.

A. $22.58

B. $24.83

C. $27.32

D. $32.25

Reference no: EM13871229

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