residual earnings are paid out to its common stockholders and, as with common stock, preferred stockholders can benefit from an appreciation in the value of the firm's stock securities. Consider the following case of Wellington Industries: Wellington Industries pays an annual dividend rate of 8.40% on its preferred stock that currently returns 11.26% and has a par value of $100.00 per share. what is the value of wellington's preferred stock? $100.00 per share $74.60 per share $89.52 per share $111.90 per share Suppose that due to high inflation, interest rates rise and pull the preferred stock's yield to 14.64%, The value of the preferred stock will __________