Assignment: Module 4 Homework Assignment Score: 45.00% Save Submit Assignment for Grading Questions Pro 9.3 (Preferred Stock Vasta) Questi 1420 Check My Work (3 remaining) eBook Earley Corporation issued perpetual preferred stock with a 12% annual dividend. The stock currently yields 10%, and its par value is $100. Round your answers to the nearest cent a. What is the stock's value? b. Suppose interest rates rise and pull the preferred stock's yield up to 15%. What is its new market value? Check My Work (3 remaining) Questions Problem 9.11 (Valuation of a Constant Growth Stock) Question 15 of 20 Check My Work (3 remaining) eBook Problem Walk-Through A stock is expected to pay a dividend of $1.50 at the end of the year (1.e., D: - $1.50), and it should continue to grow at a constant rate of 8% a year. If its required return is 13%, what is the stock's expected price 2 years from today? Do not round intermediate calculations. Round your answer to the nearest cent. O Check My Work (3 remaining)