What is the price of the preferred share today

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Problem 1: A preferred share just paid a dividend of $5.25. Dividends are paid annually. The required rate of return on the preferred share is 7.3%. What is the price of the preferred share today?

a) $71.43

b) $70.47

c) $70.95

d) $71.92

e) None of the above

Reference no: EM132622249

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