E-Eyes.com just issued some new preferred stock. The issue will pay an annual dividend of $19 in perpetuity, beginning 11 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 O O O O O $185.67 $316.67 $167.98 $166.82 $176.83

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 14P
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E-Eyes.com just issued some new preferred stock. The issue will pay an annual dividend
of $19 in perpetuity, beginning 11 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
O
$185.67
O
$316.67
O $167.98
O $166.82
O $176.83
Transcribed Image Text:E-Eyes.com just issued some new preferred stock. The issue will pay an annual dividend of $19 in perpetuity, beginning 11 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 O $185.67 O $316.67 O $167.98 O $166.82 O $176.83
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