Question $5$

$1$ Point

A preferred stock has just paid a dividend of $$1\mathrm{.}92/$ share. This annual dividend is expected to stay constant in the foreseeable future. The required rate of return on the stock is $10\%.$ Calculate the fair market value of the stock today.

$$1\mathrm{.}75/$share

$$19\mathrm{.}20/$share

$$2\mathrm{.}11/$share

$$1\mathrm{.}92/$share