if the price of a preferred stock in year two stock that pay

if the price of a preferred stock in year two (stock that pays constant dividends forever) is X, what is the price of tje preferred stock in year ten? assume discount remains constant. is it less than, equal to, or greater than X

Solution

Preferred value of stock = dividend /discount rate

Given that dividend and discount rates are constant forever

So price of preffered stock remains same..