LGA P7-7 Preferred stock Design wishes to estimate the value of its outstand valuation Jon ing preferred stock. The preferred issue has an $80 par value and pays an annual dividend of $6.40 Similar risk preferred stocks are currently earning a per share. 9.3% annual rate of return. a. What is the market value of the outstanding preferred stock? b. If an investor purchases the stock at the value in re- much does she gain or lose per share if she sells the stock when the required turn on similar-risk preferred stocks has risen to 10.5%