X-Tech Company issued preferred stock many years ago. It carries a fixed dividend of $12.00 per share. With the passage of time, yields have soared from the original 10 percent to 17 percent (yield is the same as required rate of return).

a. What was the original issue price?

Origina issue price:

b. What is the current value of this preferred stock?

current value:

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