Find the stock new market value

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Reference no: EM1347341

Ezzell Corporation issued perpetual preferred stock with a 10% annual dividend. The stock currently yields 8%, and its par value is $100.

A. What is the stock's value?
B. Suppose interest rates rise and pull the preferred stock's yield up to 12%. What is its new market value?

 

Reference no: EM1347341

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