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    Minimum Annual Dividend for Investors

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    Dollar, Inc. wants to offer preferred stock for sale at a price of $25 a share. The company wants its investors to earn an 8.25 percent rate of return. What is the minimum annual dividend the firm will need to pay per share?
    Answer
    $2.06
    $3.73
    $4.15
    $4.90
    $1.72

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    Solution Preview

    Dollar, Inc. wants to offer preferred stock for sale at a price of $25 a share. The ...

    Solution Summary

    Solution explains the computation of minimum annual dividend for investors to earn 8.25%

    $2.19

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