S$08-22$ Valuing Preferred Stock $[$LO$1]$

E$-$Eyes.com just issued some new $\frac{20}{20}$ preferred stock. The issue will pay an annual

dividend of $$20$ in perpetuity, beginning $20$ years from now. If the market requires a

return of $5\mathrm{.}4$ percent on this investment, how much does a share of preferred stock cost

today? $($Do not round intermediate calculations and round your answer to $2$ decimal

places, e$.$g$.,32\mathrm{.}16.)$

Stock price