FORMULAS Price - (P/E) X EPS : V, - Dk:V - D/K-9); E() E) - E() + BLE(M)-1): P/E - (1/earings yield), V, (ED.)E(P)(1+k) Bp WB,: S; - [E(n)-1]): S. - [E{Up) - PAB Cov (ATA) Cov (AT) - PABA Capital Gain yield - [(Ps-PayPal. Dividend yield - DivP HPR = [(Ps-Pa) + Div Ps : HPR = Capital Gain Yield + Dividend Yield Arithmetic Average = Sum of returns in each period divided by number of periods: Geometric Return = [(1+r) X (1+r) .. (1+r)1 1: E(rp) =EWER); R=r+ El ABC company's preferred A shares pay a constant dividend of $6.40/sh per year forever. If the required rate of return for investments of this risk level is 4%. What should be the price of this stock per share