What is the stock value and market value

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Preferred stock valuation

Earley Corporation issued perpetual preferred stock with a 11% annual dividend. The stock currently yields 6%, 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 12%. What is its new market value? Round your answer to two decimal places.

$   _________

Reference no: EM131543873

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