Rolen Riders issued preferred stock with a stated dividend of 6 of par Preferred stock of this type currently yields 7 , and the par value is $25 Assume dividends are paid annually a What is the value of Rolen 's preferred stock b Suppose interest rate levels rise to the point where the preferred s...

Rolen Riders issued preferred stock with a stated dividend of 6% of par. Preferred stock of this

Question:

Rolen Riders issued preferred stock with a stated of 6% of par. Preferred stock of this type currently yields 7%, and the is $25. Assume dividends are paid annually.
a. What is the value of Rolen's preferred stock?
b. Suppose interest rate levels rise to the point where the preferred stock now yields 9%.
What would be the value of Rolen's preferred stock? Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...