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1) You expect that four years from today, Sanibel corporation will begin paying its first ever dividend of $2.00 a share, an amount that will be held constant. If you require a rate of return of 7%, what is the most that you should be willing to pay today for a share of Sanibel Corp’s preferred stock?

2) If the daily rate is 0.05%, then the periodic rate would be ___________ , the APR would be _____________, and the EAR would be ____________.

Financial Management, Finance

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