$5.$ Chapter MC$,$ Section $\mathrm{.}09,$ Problem $061.$Algo

Molen Inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $$3\mathrm{.}70$ per share. If the required return on this preferred stock is $8\mathrm{.}0\%,$ then at what price should the stock sell?

a$.$ $$49\mathrm{.}95$

b$.$ $$42\mathrm{.}82$

c$.$ $$46\mathrm{.}25$

d$.$ $$35\mathrm{.}15$

e$.$ $$56\mathrm{.}89$