After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of Cornwall Enterprises. Unfortunately, you will be the only person voting for you. If the company has  shares outstanding, and the stock currently sells for $ how much will it cost you to buy a seat if the company uses straight voting? Do not round intermediate calculations. 

 

EEyes.com just issued some new preferred stock. The issue will pay an annual dividend of $ in perpetuity, beginning years from now. If the market requires a return of percent on this investment, how much does a share of preferred stock cost today? Do not round intermediate calculations and round your answer to decimal places, eg