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What is its new market value

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Reference no: EM132816660

Problem - PREFERRED STOCK VALUATION - Earley Corporation issued perpetual preferred stock with an 8% annual dividend. The stock currently yields 7%, 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 9%. What is its new market value?

Reference no: EM132816660

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