Molen Inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $2.00 per share. If the required return on this preferred stock is 6.5%, then at what price should the stock sell?
A. $30.77
B. $32.92
C. $38.15
D. $23.38
E. $27.38
Answer: A
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What will be an ideal response?
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Answer the following statement true (T) or false (F)