Harrington Enterprises’ has issued preferred stock, but its annual dividends will not begin until 7 years from now. The annual dividend is set at $10. If the discount rate is 6%, what should the current market price of Harrington be?

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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  1. Harrington Enterprises’ has issued preferred stock, but its annual dividends will not begin until 7 years from now. The annual dividend is set at $10. If the discount rate is 6%, what should the current market price of Harrington be?

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