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C214 Topic 7 Review Question and answers verified 2026
C214 Topic 7 Review Question and answers verified 2026 
 
What is the value of a preferred stock where the dividend rate is 15 percent on a $100 par value? The appropriate discount rate is 12 percent. - correct answer $125.00 
 
You are looking to purchase Ordway common stock at $55 per share, hold it one year, and sell after a dividend of $3 is paid. What would the stock price need to be in order to satisfy your required rate of return of 15 percent? - correct answer $60.25 
 
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