Tri state pickle company preferred stock pays a perpetual

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Tri State Pickle Company preferred stock pays a perpetual annual dividend of 2 1/2% of its $100 par value. If investors' required rate of return on this stock is 15%, what is the value per share?

  1. $37.50
  2. $15.00
  3. $16.67
  4. $6.00

Reference no: EM13477900

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