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Earley Corporation issued perpetual preferred stock with a 8% annual dividend. The stock currently yields 7%, and its par value is $100. What is the

Earley Corporation issued perpetual preferred stock with a 8% annual dividend. The stock currently yields 7%, and its par value is $100.

What is the stock's value?

Suppose interest rates rise and pull the preferred stock's yield up to 9%. What is the new market value?

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