Question: E-Eyes.com just issued some new preferred stock. The issue will pay an annual dividend of $14 in perpetuity, beginning 12 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 12 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

  • $115.96

  • $116.77

  • $129.06

  • $122.92

  • $233.33

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