Question: INet Library issued $85 par value preferred stock that pays a 7.25% dividend rate per year. The stock has a beta of 1.13. The current

INet Library issued $85 par value preferred stock that pays a

INet Library issued $85 par value preferred stock that pays a 7.25% dividend rate per year. The stock has a beta of 1.13. The current risk-free rate is 2.1% and the market return is 11.2%. Assuming that CAPM holds, what is the intrinsic value of this preferred stock? $50.74 $52.03 $49.77 $50.56 $48.10

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