Earley corporation issued perpetual preferred stock with a


Preferred stock valuation

Earley Corporation issued perpetual preferred stock with a 11% annual dividend. The stock currently yields 7%, and its par value is $100.

What is the stock's value? Round your answer to two decimal places.

$ ______

Suppose interest rates rise and pull the preferred stock's yield up to 14%. What is its new market value? Round your answer to two decimal places.

$ _____

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Risk Management: Earley corporation issued perpetual preferred stock with a
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