What is the intrinsic value of this preferred stock

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Reference no: EM13972018

Big Manufacturer, Inc.’s perpetual preferred stock has an annual dividend of $7.50 per share and is selling in the market for $85.00 per share. If your required return on this preferred stock is 8.0%, what is the intrinsic value of this preferred stock? Note: Enter your answer rounded off to the nearest cent.

Reference no: EM13972018

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