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What is the current value of this preferred stock

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Reference no: EM133151313

Question - X-Tech Company issued preferred stock many yea rs ago. it carries a fixed dividend of $12 per share. With the passage of time, yields have changed from the original 9 percent to 14 percent (yield is the same as required rate of return).

Required -

a. What was the original issue price?

b. What is the current value of this preferred stock?

c. If the yield on the Standard 8: Poor's Preferred Stock Index declines, how will the price of the preferred stock be affected?

Reference no: EM133151313

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