Question: E-Eyes.com just issued some new preferred stock. The issue will pay an annual dividend of $20 in perpetuity, beginning 10 years from now. If the

E-Eyes.com just issued some new preferred stock. The issue will pay an annual dividend of $20 in perpetuity, beginning 10 years from now.

If the market requires a 12 percent return on this investment, how much does a share of preferred stock cost today?

  • $60.10

  • $53.66

  • $57.10

  • $63.11

  • $166.67

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