Molen Inchas an Outstanding Issue of Perpetual Preferred Stock with an an Annual

Multiple Choice

Molen Inc.has an outstanding issue of perpetual preferred stock with an annual dividend of $7.50 per share.If the required return on this preferred stock is 6.5%,at what price should the stock sell?

A) $104.27
B) $106.95
C) $109.69
D) $112.50
E) $115.38