eBook Preferred Stock Valuation Several years ago, Rolen Riders issued preferred stock with a stated annual dividend of 11% of its $100 par value. Preferred stack of this type currently yields 10%. Assume dividends are paid annually a. What is the estimated value of Rolen's preferred stock? Round your answer to the nearest cent. b. Suppose interest rate levels have risen to the point where the preferred stock now yinds 12% What would be the new estimated value of Rolen's preferred stock? Round your answer to the nearest cent Through Nonconstant Growth Stock Valuation Assume that the average firm in your company's industry is expected to grow at a constant rate of 6% and that its dividend yield is 8%. Your company is about as risky as the average firm in the industry and just paid a dividend (De) of $1. You expect that the growth rate of dividends will be 50% during the first year (90,1 - 50%) and 30% during the second year (912 - 30%). After Year 2, dividend growth will be constant at 6%. What is the required rate of return on your company's stock? What is the estimated value per share of your firm's stock? Do not round intermediate calculations. Round the monetary value to the nearest cent and percentage value to the nearest whole number % P