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Business, 06.12.2019 07:31 fredvales19

Assume that you would like to purchase 100 shares of preferred stock that pays an annual dividend of $6.00 per share. however, you have limited resources now, so you cannot afford the purchase price. in fact, the best you can do now is to invest your money in a mutual fund that offers an average return of 6% compounded monthly. because the preferred stock is riskier, it has an annual rate of return of 12% (assume that this rate will remain constant into the foreseeable future). for you to be able to purchase this stock at the end of 5 years, how much must deposit in your bank account today?

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