Question: 13. Preferred Stock is_____________________________________________________ Formula: Example 6: Pricing preferred stock. The Mid-American Utility Companys preferred stock pays an annual dividend of 8% per year on

13. Preferred Stock is_____________________________________________________ Formula: Example 6: Pricing preferred stock. The Mid-American Utility Companys preferred stock pays an annual dividend of 8% per year on its par value of $60. If you want to earn 10% on your investment how much should you offer for this preferred stock?

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