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Earley Corporation issued perpetual preferred stock with a 10% annual dividend. The stock currently yields...

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Finance

Earley Corporation issued perpetual preferred stock with a 10% annual dividend. The stock currently yields 8%, and its par value is $100. Round your answers to the nearest cent.

  1. What is the stock's value?
    $

  2. Suppose interest rates rise and pull the preferred stock's yield up to 13%. What is its new market value?
    $

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