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Preferred stock valuation Earley Corporation issued perpetual preferred stock with a 11% annual dividend. The stock currently yields 8%, and its par value is $100.
Preferred stock valuation
Earley Corporation issued perpetual preferred stock with a 11% annual dividend. The stock currently yields 8%, and its par value is $100.
- a.Whatisthestock'svalue?Roundyouranswertotwodecimalplaces.
- $________
- b. Supposeinterestratesriseandpullthepreferredstock'syieldupto14%.Whatisitsnewmarketvalue?Roundyouranswertotwodecimalplaces.
- $_________
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Microeconomics: An Intuitive Approach With Calculus
Authors: Thomas Nechyba
2nd Edition
1305650468, 978-1305650466
