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7. You decided to purchase preferred stocks from Goldman Sacks. These shares have no maturity and promise to pay $500 million annually in dividends. These

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7. You decided to purchase preferred stocks from Goldman Sacks. These shares have no maturity and promise to pay $500 million annually in dividends. These dividends are expected to continue into the indefinite future. Assuming that you want a 10% annual return on your invest- ment, what is the purchase price of your preferred stock? 3 I A. $10 million. B. $6 billion. C. $8 million. D. $5 billion. E. None of the above

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