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majarm majarm
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6 years ago
Goggle Inc. is planning to pay a quarterly dividend of $0.50 on its perpetual preferred share. The market requires a dividend yield of 5% compounded annually on preferred shares of similar risks. What is the fair market value of its perpetual preferred share just after payment of a dividend at the end of the quarter?
A) $10
B) $40
C) $40.74
D) $20.25
E) $20
Textbook 
Contemporary Business Mathematics with Canadian Applications

Contemporary Business Mathematics with Canadian Applications


Edition: 11th
Authors:
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6 years ago
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