A perpetual preferred stock has a par value of $100 per share and it pays an annual dividend of $8.25 per share. If investors require a return of 7.2% per year to hold the preferred stock, what is its intrinsic value per share?

Question 2 options:

1)

$121.24

2)

$110.39

3)

$108.57

4)

$119.83

5)

$114.58