1. What is the value of a preferred stock that pays a perpetual dividend of $75 at...

Question:

1. What is the value of a preferred stock that pays a perpetual of $75 at the end of each year when the interest rate is 4 percent?
2. Levi Strauss & Co. paid $46,532 for a 110-year-old pair of Levi’s jeans—the oldest known pair of blue jeans—by outbidding several other bidders in an eBay Internet auction. Does this situation best represent producer—producer rivalry, consumer—consumer rivalry, or producer–consumer rivalry? Explain.

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...