Jackson Heights Homes (JHH) has an issue of preferred stock that is supposed to pay a $4 dividend every quarter; however, they have not paid the last 24 quarterly dividends, the latest of which was due today. These dividends are cumulative, and you have just learned that JHH will pay back all the skipped dividends one quarter from now and resume payment of the regularly scheduled dividend at the same time. If the EAR on this security is 10 percent, what should it sell for today?

a. $20.00

b. $60.00

c. $181.50

d. $259.62