What was the original issue price

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Reference no: EM13270846

Bedford Mattress Company issued preferred stock many years ago. It carries a fixed dividend of $11 per share. With the passage of time, yields have gone down from the original 12 percent to 8 percent (yield is the same as required rate of return).

(a) What was the original issue price? (Round your answer to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.)

(b) What is the current value of this preferred stock?(Round your answer to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.)

Reference no: EM13270846

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