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. The required return on the stock is 10 percent.
What is the price of the stock 19 years from today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Price in 19 years $
What is the price of the stock today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Current stock price $