What should be the prices of the following preferred stocks if comparable securities yield 6 percent? Use Appendix B and Appendix D to answer the questions. Round your answers to the nearest cent. MN, Inc., $7 preferred ($100 par) $ CH, Inc., $7 preferred ($100 par) with mandatory retirement after 8 years $ What should be the prices of the following preferred stocks if comparable securities yield 12 percent? Round your answers to the nearest cent. MN, Inc., $7 preferred ($100 par) $ CH, Inc., $7 preferred ($100 par) with mandatory retirement after 8 years $ In which case did the price of the stock change? As with the valuation of bonds, an increase in interest rates causes the value of preferred stock to Select In which case was the price more volatile? While the prices of both preferred stocks -Select- . the price of the Select was more volatile. Time Interest Factors for the Present Value of One Dollar Period (e.g. year) 1% 2% 3% 4% 5% 6% 7% 8% 12345 990 .980 971 962 952 943 .935 .926 980 961 943 925 907 890 .873 857 971 942 915 889 864 840 816 794 772 9% 10% 12% 14% 15% 16% 917 909 893 877 .870 862 842 826 797 769 .756 743 .751 .712 .675 .658 .641 18% 609 20% 24% 28% 847 833 806 .781 718 694 .650 610 579 524 ATT .961 924 889 855 823 .792 .763 .735 708 683 .636 592 572 552 516 4 423 373 951 906 863 822 784 747 713 .681 .650 621 .567 519 497 476 437 402 341 .291 68419 942 888 838 .790 746 705 .666 .630 596 564 507 456 432 410 370 335 775 227 7 933 871 813 760 711 665 .623 583 547 513 452 400 .376 354 314 279 222 .178 923 853 789 .731 .677 .627 .582 540 502 467 404 .351 327 305 266 233 179 139 914 .837 766 .703 645 .592 544 .500 460 424 361 308 284 263 226 1941 144 108 10 905 820 744 .676 614 558 508 463 422 386 322 270 247 227 191 162 116 085 FORD 11 896 804 722 .650 585 527 475 429 388 350 287 237 215 195 162 135 094 .066 12 887 788 701 625 557 497 444 .397 356 319 257 208 187. .168 137 .112 076 052 13 879 773 .681 .601 530 469 415 368 326 290 229 182 163 145. 116 093 061 040 14 870 758 661 577 505 442 388 340 299 263 205 160 141 .125 099 078 049 .032 15 861 743 642 555 481 417 362 315 275 239 183 140 .123 108 084 065 .040 025 16 853 .728 623 534 458 394 339 292 .252 218 163 123 107 .093 071 054 032 019 17 844 714 605 513 436 .371 317 270 231 198 146 108 093 080 060 045 18 836 700 587 494 416 350 296 250 212 180 130 .095 081 19 828 686 570 475 396 331 276 232 194 164 116 .083 20 820 673 554 456 377 312 258 215 178 149 104 073 069 051 038 070 060 043 .061 051 037 026 015 021 012 .031 017 009 .026 014 007 25 780 610 478 375 295 233 184. 146 116 092 059 .038 030 024 016 010 005 002 30 742 552 412 308 231 174 131 .099 075 057 .033 020 015 0121 007 004 002 .001 Interest Factors for the Present Value of an Annuity of One Dollar Time Period (e.g.. year) 1 2 3 1% 2% 3% 4% 5% 6% 7% 8% 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 5 6 7 8 9 10 11 9% 10% 12% 14% 16% 18% 20% 24% 28% 32% 36% 0.917 0.909 0.893 0.877 0.862 0.847 0.833 0.806 0.781 0.758 0.735 1.759 1.736 1.690 1.647 1.605 1.566 1.528 1.457 1.392 1.332 1.276 2.531 2.487 2.402 2.322 2.246 2.174 2.106 1.981 1.868 1.766 1.674 3.240 3.170 3.037 2.914 2.798 2.690 2.589 2.404 2.241 2.096 1.96 3.890 3.791 3.605 3.433 3.274 3.127 2.991 2.745 2.532 2.345 2.181 5.795 5.601 5.417 5.242 5.076 4.917 4.766 4.623 4.486 4.355 4.111 3.889 3.685 3.498 3326 3.020 2.759 2.534 2,399 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.039 3.812 3.605 3.242 2.937 2.678 2.455 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4.344 4.078 3.837 3.421 3.076 2.786 2.540 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.985 5.759 5.328 4.946 4.607 4.303 4.031 3.566 3.184 2.868 2.603 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.650, 5.216 4.833 4.494 4.193 3.682 3.269 2.930 2.650 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.988 5.453 5.029 4.656 4.327 3.776 3.335 2.978 2.083 12 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.194 5.660 5.197 4.793 4.439 3.851 3.387 3.013 2.708 13 12.134 11.348 10.635 9.986 9.394 8.534 8.358 7.904 7.487 7.103 6.424 5.842 5.342 4.910 4.533 3.912 3.427 3.040 2.727 14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.468 5.008 4.611 3.962 3.459 3.061 2.740 15 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.060 7.606 6.811 6.142 5.575 5.092 4.675 4.001 3.483 3.076 2.750 16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 17 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 18 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 19 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 8.312 7.824 6.974 6.265 5.669 5.162 4.730 4.003 3.503 3.088 2.758 8.544 8.002 7.120 6.373 5.749 5.222 4.775 4.059 3.518 3.097 2.763 8.756 8.201 7250 6.467 5.818 5.273 4.812 4.080 3.529 3.104 2.767 8.950 8.365 7.366 6.550 5.877 5.316 4.844 4.097 3539 3.109 2.770 9.128 8.514 7.469 6.623 5.929 5.353 4.870 4.110 3.546 3.113 2.772 25 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 7.843 6.873 6.097 5.467 4.948 4.147 3.564 3.122 2.776 30 25.808 22.937 19.600 17.292 15.373 13.765 12.409 11.258 10.274 9.427 8.055 7.003 6.177 5.517 4.979 4.160 3.569 3.124 2.778