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Kilbride Inc. is issuing some new preferred shares. The preferred stock will pay a perpetual dividend of $12.00 per year starting 7 years from now.

Kilbride Inc. is issuing some new preferred shares. The preferred stock will pay a perpetual

dividend of $12.00 per year starting 7 years from now. Torbay Corporation is issuing preferred

shares that pay a dividend of 10 percent, starting one year from now, on a $60 par value

preferred shares. Both preferred shares require a return of 8 percent. Which preferred share will

sell for a higher price in the market today? Show your work.

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