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How much does a share of preferred stock cost today

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Reference no: EM132548182

Peachytown Bank just issued some new preferred stock. The issue will pay a $40 annual dividend in perpetuity, beginning 20 years from now. If the market requires a 7.8% return on this investment, how much does a share of preferred stock cost today? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.)

Reference no: EM132548182

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