A preferred share pays a dividend of $3.25 per quarter until it is redeemed, at which time the value of the share is $60. What is the fair market value of the share if the redemption date is in 10 years, and shares of this type are currently generating a rate of return of 8% compounded semi-annually?

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The Answer of A preferred share pays a dividend of $3.25 per quarter until it is redeemed, at which time the value of the share is $60. What is the fair market value of the share if the redemption date is in 10 years, and shares of this type are currently generating a rate of return of 8% compounded semi-annually?

A Preferred Share Pays a Dividend of $3