Question: Last year Cowen Corporation paid $20 per share as dividends for common stock and announced that the company will adopt a progressive policy that

Last year Cowen Corporation paid $20 per share as dividends for common stock and announced that the company will adopt a progressive policy that dividend payout for common stocks will grow 4% per year constantly. Research Analysts widely believe that the dividend yield for preferred and common stocks issued by Cowen Corporation is 8%. The stock price today is closest to Page 6 of 12 A. $250 B. $260 c. $360 D. $420 E. $500

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