Butterup's 'N More Wants to Offer Some Preferred Stock That

Butterup's 'N More wants to offer some preferred stock that pays an annual dividend of $2.00 a share. The company has determined that stocks with similar characteristics provide a 9% rate of
Return. What price should Butterup's expect to receive per share for this stock offering?

A) $18.35
B) $20.00
C) $21.80
D) $22.22
E) $24.22