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Earley Corp. issues perpetual stock with 12% annual dividend. The stock currently yields 6%, and its par value is $100. Round to nearest cent. a.

Earley Corp. issues perpetual stock with 12% annual dividend. The stock currently yields 6%, and its par value is $100. Round to nearest cent.

a. What is the stock value?

b. Suppose interest rates rise and pull the preferred stock's yield up to 14%. What is its new market value?

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