.The preferred stock of General Motors pays a dividend of $2 every quarter. The appropriate…

.The preferred stock of General Motors pays a dividend of $2 every quarter. The appropriate discount rate is 2% per quarter. IB Attempt 1/3 for 10 pts. Part 1 What is the present value of the preferred stock? 100 Correct Since this is a perpetuity (constant payment forever), the present value is PMT 2 PV = = 100 I 0.02 Part 2 IB Attempt 1/3 for 10 pts. If you expect to receive the $2 every quarter, starting one quarter from now, for exactly 7 years and nothing thereafter, what is the present value of the preferred stock? 1+ decimals Submit