Question: E-Eyes.com just issued some new preferred stock. The issue will pay an annual dividend of $19 in perpetuity, beginning 11 years from now. If the

E-Eyes.com just issued some new preferred stock. The issue will pay an annual dividend of $19 in perpetuity, beginning 11 years from now.

If the market requires a 10 percent return on this investment, how much does a share of preferred stock cost today?

Multiple Choice

  • $76.92

  • $69.59

  • $190.00

  • $73.25

  • $66.59

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