PREFERRED STOCK VALUATION
Ezzell Corporation issued perpetual preferred stock with a 10% annual dividend. The stock currently yields 8%, and its par value is $ 100.
a. What is the stock’s value? b.
b. Suppose interest rates rise and pull the preferred stock’s yield up to 12%. What is its new market value?
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Monday, 18 May 2015
PREFERRED STOCK VALUATION
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