You anticipate that the economy will grow steadily at a


Your firm has preferred stock outstanding that pays a current dividend of $3.00 per year and has a current price of $39.50. You anticipate that the economy will grow steadily at a rate of 3.00% per year for the foreseeable future. What is the market required rate of return on your firm's preferred stock?

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Finance Basics: You anticipate that the economy will grow steadily at a
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