Question $25$

$4$ pts

LTM$,$ Inc. has an issue of preferred stock whose par value is $$100.$ The preferred stock pays a $4\mathrm{.}5\%$ dividend. If investors require a $4\%$ rate of return for these shares, what price should the preferred stock sell for?

$$98\mathrm{.}37$

$$136\mathrm{.}35$

$$112\mathrm{.}50$

$$118\mathrm{.}05$