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Earley Corporation issued perpetual preferred stock with a 1 2 % annual dividend. The stock currently yields 7 % , and its par value is
Earley Corporation issued perpetual preferred stock with a annual dividend. The stock currently yields and its par value is $ Round your answers to
the nearest cent.
a What is the stock's value?
$
b Suppose interest rates rise and pull the preferred stock's yield up to What is its new market value?
$
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