P-23: Preferred stock value (LO10-4) The preferred stock of Denver Savings and Loan pays an annual dividend of $5.70. It has a required rate of return of 6 percent, Compute the price of the preferred stock. share. With the passage of time, yields have soared from the original 10 percent to 17 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? c. If the yield on the Standard \& Poor's Preferred stock index declines, how will the price of the preferred stock be affected? P.26: Preferred stock value (LO10-4) Analogue Technology has preferred stock outstanding that pays a \$9 annual dividend. It has a price of $76. What is the required rate of return (vield) on the oreferrad athrk