Question: Previous question that leads up to #3 2. What should be the prices of the following preferred stocks if comparable securities yield 7 percent? Why

Previous question that leads up to #3

2. What should be the prices of the following preferred stocks if comparable securities yield 7 percent? Why are teh valuations different?

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

b. CH, Inc., $8 preferrred ($100 par) with mandantory retirement after 20 years

The question I need answered is below:

Basic Finance by Herbert B. Mayo 11th edition

Chapter 14 p. 307

#3. Repeat the previous problem but assume that comparable yields are 10 percent. In which case did the price of the stock change? In which case was the price more volatile?

(Please explain in detail how you got each answer/ got to each step)

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