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Johnston Corporation is growing at a constant rate of 6% per year. The cost of preferred stock (rp) is 8%.

Johnston Corporation is growing at a constant rate of 6% per year. The cost of preferred stock (rp) is 8%. The par value of the preferred stock is $120, and the stock has a stated dividend of 10% of par. What is the market value of the preferred stock?

This question was asked on Mar 19, 2010.

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