What should be the price of the following preferred stock


What should be the price of the following preferred stock it comparable securities yield 7%.

a) Preferred stock A is estimated to pay an $8.00 dividend.

b) Preferred stock B is estimated to pay an $8.00 dividend but will be retired after 20 years.

c) What are the valuations different?

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Financial Management: What should be the price of the following preferred stock
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