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1 0 - 8 : Preferred Stock Preferred stock valuation Ezzell Corporation issued perpetual preferred stock with a 1 1 % annual dividend. The stock

10-8: Preferred Stock
Preferred stock valuation
Ezzell Corporation issued perpetual preferred stock with a 11% annual dividend. The stock currently yields 8%, and its par value is $100.
a. What is the stock's value? Round your answer to two decimal places.
$
b. Suppose interest rates rise and pull the preferred stock's yield up to 14%. What would be its new market value? Round your answer to two decimal places.
$
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