Question: A companys preferred shares pay a $2 dividend every six months in perpetuity. What is the fair market value of the shares just after payment

A company’s preferred shares pay a $2 every six months in perpetuity. What is the fair market value of the shares just after payment of a if the yield required by the market on shares of similar risk is
a. 4% compounded semiannually?
b. 5% compounded semiannually?

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