Jampj foods wants to issue some 7 percent preferred stock, Ask an Expert

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J&J Foods wants to issue some 7 percent preferred stock that has a stated liquidating value of $100 a share. The company has determined that stocks with similar characteristics provide a 12.8 percent rate of return. What should the offer price be? Answer A. $37.26 B. $41.38 C. $48.20 D. $54.69 E. $62.60

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