Problem 14-03

What should be the prices of the following preferred stocks if comparable securities yield 8 percent? Use Appendix B and Appendix D to answer the questions. Round your answers to the nearest cent.

MN, Inc., $11 preferred ($110 par)

$

CH, Inc., $11 preferred ($110 par) with mandatory retirement after 12 years

$

What should be the prices of the following preferred stocks if comparable securities yield 10 percent? Round your answers to the nearest cent.

MN, Inc., $11 preferred ($110 par)

$

CH, Inc., $11 preferred ($110 par) with mandatory retirement after 12 years

$