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 $2.00 per share.If the required return on this preferred stock is 6.5%,then at what price should the stock sell?

A) $30.77
B) $32.92
C) $38.15
D) $23.38
E) $27.38