Question:

Valuing Preferred Stock.?

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E-Eyes.com has a new issue of preferred stock it calls 20/20 preferred. The stock will pay a $20 dividend per year, but the first dividend will not be paid until 20 years from today. If you require an 8 percent return on this stock, how much should you pay today?

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1 ANSWERS


  1. do your own homework. learn how to use that financial calculator.

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