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Please provide the inputs for the financial calc. as well as any other work needed

The Jones Company has decided to undertake a large project. Consequently, there is a need for additional funds. The CFO plans to issue preferred stock with a perpetual annual dividend of $5 per share and a par value of $30. If the required rate of return (rp) on this stock is currently 20%, what should be the market value of the preferred stock?

a.   $150

b.   $100

c.   $ 50

d.   $ 25

e.   $ 10

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91600890

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