Find new market value if nterest rate rise and pull yield


Ezzell Corporation issued perpetual preferred stock with a 10% annual dividend. The stock currently yields 8% of par, and its parvalue is $100.

a- what is the stock's value?

b- suppose interest rate rise amd pull the preferred stock'syield up to 12%, what is its new market value?

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Finance Basics: Find new market value if nterest rate rise and pull yield
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