X-Tech issued preferred shares many years ago. They carry a fixed dividend of $5 per share. With the passage of time, yields have soared from the originalS percent to 12 percent (yield is the same as required rate of return).

a. What was the original issue price?

b. What is the current value of a X-Tech preferred share?

c. If the yield on the Preferred Stock Index declines, how will the price of these preferred shares be affected?