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What should the current price be of the preferred stock

Problem:

Preferred stock of ABC corporation pays an annual dividend at the rate of 4.5% per share. If ABC Corp's preferred shares are issued at $25 par value per share, and comparable yields are at 7.25%, what should the current price be of the preferred stock?

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Finance Basics: What should the current price be of the preferred stock

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Finance Basics: What should the current price be of the preferred stock

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