Question: E-Eyes.com just issued some new preferred stock. The issue will pay an annual dividend of $13 in perpetuity, beginning 5 years from now. If the

E-Eyes.com just issued some new preferred stock. The issue will pay an annual dividend of $13 in perpetuity, beginning 5 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

  • $171.62

  • $161.91

  • $163.04

  • $216.67

  • $180.20

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