E-Eyes.com Bank just issued some new preferred stock. The issue will pay a $20 annual dividend in

Question:

E-Eyes.com Bank just issued some new preferred stock. The issue will pay a $20 annual in perpetuity, beginning 20 years from now. If the market requires a 6.4 percent return on this investment, how much does a share of preferred stock cost today?
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...