What would an investor be willing to pay for a share of preferred stock that paid an annual $5 dividend if the yield on preferred was 40 basis point below the A bond yield of 7%

单项选择题A stock paid a $3 dividend last year. An investor projects that next year s dividend will be 20% higher and that the stock will be selling for $60 at the end of the year. The risk-free rate of interest is 6% , the market return is 10% , and the stock s beta is 1.8. What is the value of the stock