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Earley Corporation issued perpetual preferred stock with an 11% annual dividend. The stock
currently yieids 10% , and its par value is $100 . Round your answers to the nearest cent. a. What
is the stock's value? $ b. Suppose interest rates rise and pull the preferred stock's yield up to 14%
. What is its new market value?

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  • 1. Earley Corporation issued perpetual preferred stock with an 11% annual dividend. The stock currently yieids 10% , and its par value is $100 . Round your answers to the nearest cent. a. What is the stock's value? $ b. Suppose interest rates rise and pull the preferred stock's yield up to 14% . What is its new market value?