Earley Corporation issued perpetual preferred stock with a 9% annual dividend. The stock currently yields 6%, and its par value is $100. Round your answers to the nearest cent.
9.11
Annual dividend=100*9%=$9
Stock value=Annual dividend/Current yield
a.Stock value=9/0.06=$150
b.Stock value=9/0.11=$81.82(Approx).
Earley Corporation issued perpetual preferred stock with a 9% annual dividend. The stock currently yields 6%,...
Earley Corporation issued perpetual preferred stock with a 9% annual dividend. The stock currently yields 8%, 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 12%. What is its new market value? $
Earley Corporation issued perpetual preferred stock with an 8% annual dividend. The stock currently yields 6%, 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 11%. What is its new market value?
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Earley Corporation issued perpetual preferred stock with an 11% annual dividend. The stock currently yields 10%, and its par value is $100. Round your answers to the nearest cent. What is the stock's value? $ Suppose interest rates rise and pull the preferred stock's yield up to 14%. What is its new market value? $
Earley Corporation issued perpetual preferred stock with an 11% annual dividend. The stock currently yields 7%, and its par value is $100. Round your answers to the nearest cent. What is the stock's value? $ Suppose interest rates rise and pull the preferred stock's yield up to 11%. What is its new market value? $
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