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?