A distant well to do relative is leaving your client either a 1000 shares of preferred stock (a perpetuity) or cash. The choice is your client's. The client would receive the cash today. The preferred stock would be received by the client at a later date. The stock pays a $6.26 annual dividend per share. Your client would receive the first annual dividend payment in 11 years. The client is asking you to figure the minimal cash payment the client should accept today in lieu of the preferred stock. The client's required rate of return is 6.4%