You are considering a new preferred stock issue. The preferred stock will pay a $9.50 annual dividend, but will not begin paying dividend until 7 years from today. If your required return is 8.25%, what is the most you would be willing to pay for this preferred stock? Question 2 options: $64.41 $66.11 $66.56 $69.42 $71.57 $64.41 $66.11 $66.56 $69.42 $71.57.

1. You are considering a new preferred stock issue. The preferred stock will pay a $9.50 annual
dividend, but will not begin paying dividend until 7 years from today. If your required return is
8.25%, what is the most you would be willing to pay for this preferred stock?
Question 2 options:
$64.41
$66.11
$66.56
$69.42
$71.57
$64.41
$66.11
$66.56
$69.42
$71.57