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., $5 preferred ($130 par)

$__________

CH, Inc., $5 preferred ($130 par) with mandatory retirement after 15 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., $5 preferred ($130 par)

$__________

CH, Inc., $5 preferred ($130 par) with mandatory retirement after 15 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 ______ fall/rise.

In which case was the price more volatile?

While the prices of both preferred stocks _________ (declined/increased), the price of the ________________ (perpetual preferred stock/stock with mandatory retirement) was more volatile.