Would still want to own the stock

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Problem 1: The preferred stock of ABC Corp. had a par value of $100 and a dividend yield of 7% when you purchased it. The required return on similar assets is 8%. The stock is not trading for $90. Would you still want to own the stock? Explain your answer.

Problem 2: ABC pays an annual dividend of $0.83. You purchased the stock at $37.50. What is the dividend yield?

Reference no: EM132696593

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