E-Eyes.com just issued some new preferred stock. The issue will pay a constant quarterly dividend of $5.00 in perpetuity, beginning exactly one quarter from now. If the market requires an annual return of 19.00 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 7 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 $