Nirvana Pillows lnc.'s preferred stock will pay its rst quarterly dividend 5 years from today. The expected dividend is $6.84. If your next best investment of similar risk has an EAR of 7.8 percent, what would you be willing to pay for a share of Nirvana today? Round your answer to the penny. Do not enter $, %, or commas. For example, 3512345678 is 1234.57. J} 252.59 margin of error +/- 0.01 The dividends are quarterly so you must convert the EAR to a quarterly rate. Conversion, (1+EAR)'25 -1 = quarterly rate in decimal form. Divide the quarterly dividend by the quarterly rate to convert the perpetuity into a lump sum value one quarter before the rst dividend in the stream. You discount the lump sum back to day using the quarterly rate and your tools from Chapter Five. You must remember that if the dividend start in the given number of years, then the lump is one quarter before then. The number of quarters you discount the lump is 4 X years - 1