Preferred Stocks with a Fixed Maturity Preferred stock with a fixed maturity is priced using a bond valuation model, adding the present value of the dividend payments to the present value of the par value PS0=1+mimD+(1+mi)2mD+(1+mi)3mD++(1+mi)mD+P Most preferred stocks make quarterly dividend payments, so m=4 Preferred Stocks with a Fixed Maturity - E-Corp preferred has a par value of $100, a dividend of $10 ( $2.50 quarterly), and an effective maturity of 20 years. If similar stocks yield 8%, what is the value of the stock? a. $119.87 b. $105.63 c. $110.00 d. $100.00 e. $98.53