Question: E-Eyes.com just issued some new preferred stock. The issue will pay an annual dividend of $9 in perpetuity, beginning 8 years from now. If the

E-Eyes.com just issued some new preferred stock. The issue will pay an annual dividend of $9 in perpetuity, beginning 8 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

  • $99.76

  • $94.11

  • $150.00

  • $94.77

  • $104.75

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