What is the value of preferred stock

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Several years ago, Rolen Riders issued preferred stock with a stated annual dividend of 8% of its $100 par value. Preferred stock of this type currently yields 7%. Assume dividends are paid annually. What is the value of Rolen's preferred stock? Round your answer to the nearest cent. $ Suppose interest rate levels have risen to the point where the preferred stock now yields 11%. What would be the new value of Rolen's preferred stock? Round your answer to the nearest cent. $

Reference no: EM13914463

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