Companies that have preferred stockholders promise to pay a stated dividend for an infinite period. Preferred stock is treated like a perpetuity if the payments last forever. Preferred stocks are considered to be a hybrid of a stock and a bond. Companies can suspend the dividend paid to preferred stockholders without throwing the company into bankruptcy. As with bonds, preferred stockholders receive a fixed dividend before earnings are paid out to common stockholders and, as with common stock, preferred stockholders can benfit from potential appreciation in the value of stock. Underwood Transcontinental Corp. pays an annual dividend rate of 12.00% on its preferred stock that currently returns 16.08% and has a par value of $100.00. What is the value of underwood transcontinental corp.'s stock? (111.94, 89.56, 100.00, 74.63) Suppose, due to high inflation, interest rates rise and pull the preferred stock's yield to 20.90%. The value of the preferred stock will (Increase or decrease?)