Use the following information to answer the next 2 questions:

You are considering investing in a preferred stock that is paying $3.00 dividends and will continue paying the same level of dividend in perpetuity, if your required rate of return is 12%.

1) What is the current market price?

		20.00
		22.00
		25.00
		28.00

2) If conditions remain the same what is the expected price in 8 years?

		20.00
		22.00
		25.00
		28.00