Graphical Designs is offering 20-20 preferred stock. The stock will pay an annual dividend of $20 with the first dividend payment occurring 20 years from today. The required return on this stock is 5.10 percent. What is the price of the stock today?

$ 152.35  

Explanation:

The stock price today can be computed by first determining the future value of the dividend in perpetuity ,then discounting that to present value.

Value in perpetuity=dividend/required return

dividend is $20

required return is 5.10%

value in perpetuity=$20/5.10%=$392.16

The price of the stock today is the present value of the value in perpetuity

PV=FV*(1+r)^-n

FV is $392.16

r is the required return of 5.10%

n is the number of years involved,which is 19,it is 19 because counting from today till the next next years would be first day of the next twenty years

price=$392*(1+5.10%)^-19=$ 152.35  

the correct answer option is b. a single paragraph.

explanation:

when you are thinking about paragraph​ topics, you should always choose a subject that can be adequately addressed in a single paragraph.

a paragraph is a piece of writing consisting of a few sentences that deal with a single theme. it has only a single idea that the paragraph revolves around and talks about.

so a paragraph topic must be chosen wisely where a single idea can be communicated in a single paragraph.