Question: Cricket Co. preferred stock has a par value equal to $25 per share and pays an annual dividend equal to 8% of the par value.

Cricket Co. preferred stock has a par value equal to $25 per share and pays an annual dividend equal to 8% of the par value. If investors require a 12 percent return to purchase Cricket's preferred stock, what is the stocks market value today?

Group of answer choices

$25.00

$75.00

$37.50

$16.67

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