How much would a share of preferred stock cost

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E-Eyes.com just issued some new preferred stock. The issue will pay a constant quarterly dividend of $3.00 in perpetuity, beginning exactly one quarter from now. If the market requires an annual return of 18.00 percent with quarterly compounding, how much does a share of preferred stock cost today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Stock price $

How much would a share of preferred stock cost today if the dividends begin exactly 5 years from now instead of next quarter? Don't forget that the PV formula for a perpetuity assumes the first payment is at the end of the first period. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Stock price $ ?

Reference no: EM131506439

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