X-Tech Company issued preferred stock many years ago. It carries a fixed dividend of $12 per share. With the passage of time, yields have soared from the original 9 percent to 14 percent (yield is the same as required rate of return).

a.	What was the original issue price? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Original issue price

$

b.	What is the current value of this preferred stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Current value

$

c.	If the yield on the Standard & Poors Preferred Stock Index declines, how will the price of the preferred stock be affected?

	The price of preferred stock will increase.
	The price of preferred stock will decrease.