Question: E-Eyes.com just issued some new preferred stock. The issue will pay an annual dividend of $6 in perpetuity, beginning 9 years from now. If the

E-Eyes.com just issued some new preferred stock. The issue will pay an annual dividend of $6 in perpetuity, beginning 9 years from now.

If the market requires a 7 percent return on this investment, how much does a share of preferred stock cost today?

Multiple Choice:

  • $46.62

  • $49.89

  • $47.39

  • $52.38

  • $85.71

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