Why are the valuations different

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What should be the prices of the following preferred stock if comparable securities yield 7 percent? Why are the valuations different?

a. MN Inc., $8 preferred($100 Par)

b. CH Inc., $8 Preferred($100 Par) with mandatory retirement after 20 years

Repeat the above problem but assume the comparable yields are 10 percent

Reference no: EM131742399

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