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Preferred stock valuation Ezzell Corporation issued perpetual preferred stock with a 9% annual dividend. The stock currently yields 7%, and its par value is $100.
Preferred stock valuation
Ezzell Corporation issued perpetual preferred stock with a 9% annual dividend. The stock currently yields 7%, and its par value is $100.
What is the stock's value? Round your answer to two decimal places.
$
Suppose interest rates rise and pull the preferred stock's yield up to 13%. What would be its new market value? Round your answer to two decimal places.
$
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