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Business, 23.04.2020 00:56 mfin11

Tarpon Bay Industries preferred stock pays an annual dividend of $2.50 per share. If the risk-free rate is 2%, the expected return on the market is 8%, and Tarpon Bay's preferred stock is only one-half as risky as the market on average, what is the most that an investor should be willing to pay for a share of Tarpon Bay preferred stock TODAY?

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Tarpon Bay Industries preferred stock pays an annual dividend of $2.50 per share. If the risk-free r...
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