Question: Attempts Keep the Highest / 2 4 . Problem 9 . 0 8 ( Preferred Stock Valuation ) Earley Corporation issued perpetual preferred stock with

Attempts Keep the Highest /2
4. Problem 9.08(Preferred Stock Valuation)
Earley Corporation issued perpetual preferred stock with a 9% annual dividend. The stock currently yields 7%, 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 11%. What is its new market value?
$
Attempts Keep the Highest /2 4. Problem 9.08(Preferred Stock Valuation) Earley

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