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Earley Corporation issued perpetual preferred stock with an 8% annual dividend. The stock current yields 7%, and its par value is $100 a. What is
Earley Corporation issued perpetual preferred stock with an 8% annual dividend. The stock current yields 7%, and its par value is $100
a. What is the stock's value?
b. Suppose interest rates rise and pull the preferred stock's yield up to 9%. What is its new market value?
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