P16.7 Sara-J Co. has a preferred stock outstanding that pays annual dividends of $3.35 a share. At what price would this stock be trading if market yields were 9.24%? Use one of the dividend valuation models (from Chapter 8) to price this stock, assuming you have a 9.24% required rate of return. Are there any similarities between the 2 prices? Explain. If market yields were 9.24%, the price this stock would be trading at is $ . (Round to the nearest cent.) Assuming you have a 9.24% required rate of return, the maximum price you would pay for this stock is $ . (Round to the nearest cent.) Are there any similarities between the 2 prices? Explain. (Select the best answer below.) O A. The first method uses the perpetuity model for valuing preferred stock. The second method uses the zero-growth valuation model. The methods result in different prices because the market yield and the individual investor's required rate of return are the same. OB. The first method uses the perpetuity model for valuing preferred stock. The second method uses the zero-growth valuation model. Both methods result in the same price, which will occur when the market yield and an individual investor's required rate of return are the same. OC. The first method uses the perpetuity model for valuing preferred stock. The second method uses the zero-growth valuation model. The methods result in the same prices because the market yield and the individual investor's required rate of return are different