Problem:
A company is offering perpetual preferred stock (its dividend payments last forever) with a fixed annual dividend of $100. If your required rate of return on this investment is 12 percent,
Question: What is the value of each share?
A. $1,000.00
B. $962.00
C. $904.67
D. $833.33
E. $813.67
Please provide explanation, no word limit count.