Investors believe the yield on this this preferred stock


BACI Co's also has a preferred stock outstanding, which pays $5 annual dividend. It is currently priced $93. Investors believe the yield on this this preferred stock should drop by 1% due to lowered inflationary expectations. Which of the following is closest to the new price if this expectation is correct?

$114.00

$90.00

$78.00

$103.00

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Financial Management: Investors believe the yield on this this preferred stock
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