In August, 2011, Warren Buffett decided to make an investment in Bank of America by purchasing a large amount of preferred stock. The terms of the investment were that Bank of America would pay Buffett a fixed dividend of $300 million every year and that the investment would last indefinitely. (Because the transaction had no maturity or end date, it can be considered a perpetuity.) In prior deals with General Electric and Goldman Sachs, Buffett had demanded a 10% rate of return. If he had wanted to achieve a 10% rate of return on his Bank of America investment, how much would he have paid for the Bank of America preferred stock? (Note that 10% was not the actual rate Buffett used for this transaction; we'll compare the answer we get for this problem to the transaction's actual terms in class on Friday.)