Several years ago, Rolen Riders issued preferred stock with a stated annual dividend of 8% of its $100 par value. Preferred stock of this type currently yields 7%. Assume dividends are paid annually.

What is the estimated value of Rolen's preferred stock? Round your answer to the nearest cent.

$

Suppose interest rate levels have risen to the point where the preferred stock now yields 9%. What would be the new estimated value of Rolen's preferred stock? Round your answer to the nearest cent.

$