Preferred stock valuation-what is the stock value

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Reference no: EM131902270

Preferred stock valuation Earley Corporation issued perpetual preferred stock with a 10% annual dividend. The stock currently yields 8%, and its par value is $100. What is the stock's value? Round your answer to two decimal places. $ Suppose interest rates rise and pull the preferred stock's yield up to 11%. What is its new market value? Round your answer to two decimal places. $

Reference no: EM131902270

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