X-Tech Company issued preferred stock many years ago. It carries a fixed dividend of $13 per share. With the passage of time, yields have soared from the original 7 percent to 13 percent (yield is the same as required rate of return).

X-Tech Company issued preferred stock many years ago. It carries a fixed dividend of $13 per share. With the passage of time, yields have soared from the original 7 percent to 13 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 & Poor's Preferred Stock Index dedlines, how will the price of the preferred stock be affected? The price of preferred stock will increase. The price of preferred stock will decrease. References eBook & Resources