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Suppose Edinburgh Exports pays an annual dividend rate of 11.40% on its preferred stock that currently returns 15.28% and has a par value of $100.00
Suppose Edinburgh Exports pays an annual dividend rate of 11.40% on its preferred stock that currently returns 15.28% and has a par value of $100.00 per share. What is the value of Edinburghs preferred stock?
$111.91 per share
$89.53 per share
$100.00 per share
$74.61 per share
Suppose that due to high inflation, interest rates rise and pull the preferred stocks yield to 19.86%. The value of the preferred stock will... decrease or increase?
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