A Preferred Share of Coquihalla Corporation Will Pay a Dividend

A preferred share of Coquihalla Corporation will pay a dividend of $8 in the upcoming year and every year thereafter; that is, dividends are not expected to grow. You require a return of 7% on this stock. Using the constant-growth DDM to calculate the intrinsic value, a preferred share of Coquihalla Corporation is worth ________.

A) $13.50
B) $45.50
C) $91
D) $114.29