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.
If you require a 9.00 percent return on this stock, how much should you pay today?© BrainMass Inc. brainmass.com June 4, 2020, 2:54 am ad1c9bdddf
The value of any financial asset is the discounted value of cash flows associated with that asset
We have a perpetuity of $ 20 ...
Value of a stock that would pay the first dividend 20 years from today.