Molen Inchas an Outstanding Issue of Perpetual Preferred Stock with an an Annual

question 70

Multiple Choice

Molen Inc.has an outstanding issue of perpetual preferred stock with an annual dividend of $7.50 per share.If the required return on this preferred stock is 6.5%,at what price should the stock sell?

• A)$104.27
• B)$106.95
• C)$109.69
• D)$112.50
• E)$115.38

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