Attempts $$ Keep the Highest $/2$

$4.$ Problem $9\mathrm{.}08($Preferred Stock Valuation$)$

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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?

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b$.$ Suppose interest rates rise and pull the preferred stock's yield up to $11\%.$ What is its new market value?

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