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Problem 9-8 Preferred stock valuation Earley Corporation issued perpetual preferred stock with a 10% annual dividend. The stock currently yields 8%, and its par value

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Problem 9-8 Preferred stock valuation Earley Corporation issued perpetual preferred stock with a 10% annual dividend. The stock currently yields 8%, 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 15%. what is its new market value? Round your answer to two decimal places

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