Intro The preferred stock of General Motors pays a dividend of $2 every quarter. The appropriate discount rate is 2% per quarter. Part 1 Attempt 1/7 for 10 pts. What is the present value of all dividends? 100 Correct Since this is a perpetuity (constant payment forever), the present value is PMT 2 PV = I 0.02 = 100 Part 2 | Attempt 4/7 for 10 pts. If you expect to receive the $2 every quarter for exactly 2 years and nothing thereafter, what is the present value of those cash flows? 11+ decimals Previous answers: 8; 1; 4.04 Submit