What price should the preferred stock sell for

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Reference no: EM13299087

I have purchased a preferred stock whose par value is $500. The preferred stock pays a 4.5% dividend. If investors require a 5.5% rate of return for these shares, what price should the preferred stock sell for?

A. $611.11

B. $508.33

C. $409.09

D. $81.82

Reference no: EM13299087

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