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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 changed
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 changed from the original 10 percent to 13 percent (yield is the same as required rate of return).
a. What was the original issue price?
b. What is the current value of this preferred stock?
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