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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

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?

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

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