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North Pole Cruise Lines issued preferred stock many years ago. It carries a fixed dividend of $11 per share. With the passage of time, yields

North Pole Cruise Lines issued preferred stock many years ago. It carries a fixed dividend of $11 per share. With the passage of time, yields have soared from the original 10 percent to 9 percent (yield is the same as required rate of return). a. What was the original issue price?

b. What is the current value of this preferred stock?

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