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NEW QUESTION: 1
A fundamental analyst is examining the perpetual preferred stock of a large telecom company. The preferred stock is expected to pay a quarterly dividend of $0.55, and the required rate of return is 11.75% per year. At what price would this preferred stock be fairly valued?
A. $21.14
B. None of these answers is correct.
C. $16.44
D. $18.20
E. The answer cannot be calculated from the information provided.
F. $18.72
Answer: F
Explanation:
Explanation/Reference:
Explanation:
Assuming that the quarterly dividend is to remain unchanged forever allows us to use the standard perpetuity model, which is illustrated as follows:
Value of preferred stock = {Annual dividend / required rate of return}
In this example, we are given the quarterly dividend, which must be multiplied be annualized in order to be imputed into the perpetuity valuation equation.
So said, a quarterly dividend of $0.55 translates into a yearly dividend of $2.20. Incorporating this yearly dividend into the perpetuity valuation model will result in the following:
Value of preferred stock = {$2.20 / 0.1175} = $18.72

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Lenoxsoft uses their existing email sending platform to send a monthly promotional email to subscribers on the 15th of each month. They are beginning their Pardot implementation on the 5th and must send the email on time. They have asked to focus on the minimum setup in Pardot in order to meet their email send deadline. Based on the above constraints, what should the Consultant determine to be the first steps in Pardot?
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Refer to the exhibit.

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