Preferred stock valuation Jones Design wishes to estimate the value of its outstanding preferred stock. The preferred issue has a par value of $110 and pays an annual dividend of $6.40 per share. Similar-risk preferred stocks are currently earning an annual rate of return of 8.7%. 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 10.5%? 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 10.5%, the value of the stock will be $ per share. (Round to the nearest cent.) per 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 10.5%, the gain or loss is $ share. (Round to the nearest cent. Enter a positive number for a gain and a negative number for a loss.) ho ? Enter your answer in each of the answer boxes