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6. RMC issued perpetual preferred stock with a 20% annual dividend. The stock currently yields 4%, and its par value is $100. Suppose interest rates
6. RMC issued perpetual preferred stock with a 20% annual dividend. The stock currently yields 4%, and its par value is $100. Suppose interest rates rise and pull the preferred stock's yleld up to 10%. How much would its market value change? A) $200 B) $500 c) ($200 OD) (5500) Ey None of the above
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