Preferred stock valuation Jones Design wishes to estimate the value of its outstanding preferred stock. The preferred issue has a par value of $$120$ and pays an annual dividend of $$4\mathrm{.}50$ per share. Similar$-$risk preferred stocks are currently earning an annual rate of return of $7\mathrm{.}5\%.$

a$.$ What is the market value of the outstanding preferred stock?

b$.$ If an investor purchases the preferred stock at the value calculated in part a$,$ how much does she gain or lose per share if she sells the stock when the required return on similar$-$risk preferred stocks has risen to $8\mathrm{.}7\%?$

a$.$ The market value of the outstanding preferred stock is $ $$ per share. $($Round to the nearest cent$)$

b$.$ If the required return on similar$-$risk preferred stocks has risen to $8\mathrm{.}7\%,$ the value of the stock will be $ $$ per share. $($Round to the nearest cent.$)$

If an investor purchased the preferred stock at the value calculated in part a and sells the stock when the required return on similar$-$risk preferred stocks has risen to $8\mathrm{.}7\%,$ the gain or loss is $ $$ per share. $($Round to the nearest cent. Enter a positive number for a gain and a negative number for a loss.$)$