A perpetual preferred stock position pays quarterly dividends of $1,000 indefinitely (forever). If an investor has a

Question:

A perpetual preferred stock position pays quarterly dividends of $1,000 indefinitely (forever). If an investor has a required rate of return of 12 percent per year compounded quarterly on this type of investment, how much should he be willing to pay for this stream?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...