What is the value of a preferred stock that pays a perpetual dividend of $ 125 at

Question:

What is the value of a preferred stock that pays a perpetual dividend of $ 125 at the end of each year when the interest rate is 5 percent?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...