Problem $12-9$ Floating Preferred

You are considering buying a floating preferred share slated to pay an annual dividend of $$3\mathrm{.}75$ one year from now. The preferred$$s dividends will reset to LIBOR $+6\mathrm{.}3\%,$ and the current LIBOR rate is $\mathrm{.}7\%.$ Suppose that shares have a par value of $$24.$

Dividend $$3\mathrm{.}75$

Discount rate $7\%$

n $1$

Pn $$24$

What price should you expect to pay today?

The price you would expect to pay today would be $

$.$ Round your answer to the nearest two decimal places.