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Intro The preferred stock of General Motors pays a dividend of $2 every quarter. The appropriate discount rate is 5% per quarter. - 8 Attempt

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Intro The preferred stock of General Motors pays a dividend of $2 every quarter. The appropriate discount rate is 5% per quarter. - 8 Attempt 1/5 for 10 pts. What is the present value of all dividends? Correct Since this is a perpetuity (constant payment forever), the present value is PV=IPMT=0.052=40 If you expect to receive the $2 every quarter for exactly 5 years and nothing thereafter, what is the present value of those cash flows

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