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Question: The Bank of Ellicott City has issued perpetual preferred stock with a $100 par value. The bank pays a quarterly dividend of $1.65 on this...

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The Bank of Ellicott City has issued perpetual preferred stock with a $100 par value. The bank pays a quarterly dividend of $1.65 on this stock. What is the current price of this preferred stock given a required rate of return of 13.75 percent? (Round answer to 2 decimal places, e.g. 15.25.)


Current price $


The preferred stock for the Bank of Ellicott City is currently selling at $49.54. If the required rate of return is 12.5 percent, what is the dividend paid by this stock? (Round answer to 2 decimal places, e.g. 15.25.)



Dividend paid $

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