Question: The preferred stock will pay a dividend of $1.25 in the upcoming year, and every year thereafter, i.e., dividends are not expected to grow. You

The preferred stock will pay a dividend of $1.25 in the upcoming year, and every year thereafter, i.e., dividends are not expected to grow. You require a return of 12percent on this stock. Use the constant growth DDM to calculate the intrinsic value of this preferred stock.

11.56 dollars

9.65 dollars

11.82 dollars

10.42 dollars

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