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Problem 9-8 Preferred stock valuation Ezzell Corporation issued perpetual preferred stock with a 8% annual dividend. The stock currently yields 6%, and its par value
Problem 9-8 Preferred stock valuation Ezzell Corporation issued perpetual preferred stock with a 8% annual dividend. The stock currently yields 6%, 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 14%. What would be its new market value? Round your answer to two decimal places
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