Wagner industries preferred stock has a par value of 50 and


Wagner Industries preferred stock has a par value of $50 and a stated dividend rate of 6.0%. This means that Wagner will pay $3.00 (6% x $50) in dividends per share, per year forever. There will never be an increase or decrease in the dividend. Suppose you require a minimum return of 8% on this investment; what is the maximum market price you will pay?

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Business Economics: Wagner industries preferred stock has a par value of 50 and
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