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North Pole Cruise Lines issued preferred stock many years ago. It carries a fixed dividend of $12 per share. With the passage of time, yields

North Pole Cruise Lines issued preferred stock many years ago. It carries a fixed dividend of $12 per share. With the passage of time, yields have changed from the original 9 percent to 7 percent (yield is the same as required rate of return).

  1. What was the original issue price?
  2. What is the current value of this preferred stock?

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