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PREFERRED STOCK VALUATION Earley Corporation issued perpetual preferred stock with a 9% annual dividend. The stock currently yields 6%, and its par value is $100

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PREFERRED STOCK VALUATION Earley Corporation issued perpetual preferred stock with a 9% annual dividend. The stock currently yields 6%, and its par value is $100 a. What is the stock's value? Round your answer to two decimal places. b. Suppose interest rates rise and pull the preferred stock's yield up to 11%. What is its new market value? Round your answer to two decimal places

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