Perpetual preferred stock-what is intrinsic value per share

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Reference no: EM131602296

A perpetual preferred stock has a par value of $100 per share and it pays an annual dividend of $8.25 per share. If investors require a return of 7.2% per year to hold the preferred stock, what is its intrinsic value per share?

1) $121.24

2) $110.39

3) $108.57

4) $119.83

5) $114.58

Reference no: EM131602296

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