Question: E-Eyes.com just issued some new preferred stock. The issue will pay an annual dividend of $14 in perpetuity, beginning 7 years from now. If the

E-Eyes.com just issued some new preferred stock. The issue will pay an annual dividend of $14 in perpetuity, beginning 7 years from now.

If the market requires a 6 percent return on this investment, how much does a share of preferred stock cost today?

Multiple Choice

  • $164.49

  • $156.27

  • $172.72

  • $155.18

  • $233.33

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