FIN3403 – E-Eyes.com has a new issue of preferred stock it calls 20/20 preferred.

FIN3403 – E-Eyes.com has a new issue of preferred stock it calls 20/20 preferred.

8. E-Eyes.com has a new issue of preferred stock it calls 20/20 preferred. The stock will pay a $20 dividend per year, but the first dividend will not be paid until 20 years from today. The required return on the stock is 10.5 percent.Required:What is the price of the stock 19 years from today? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Price in 19 years$ What is the price of the stock today? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Current stock price$


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