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? $
Annual dividend=100*11%=11
Stock value=Annual dividend/Current yield
a.Stock value=11/0.07=$157.14(Approx).
b.Stock value=11/0.11=$100
Earley Corporation issued perpetual preferred stock with an 11% annual dividend. The stock currently yields 7%,...
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 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?
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. 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? $ 9.11
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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? $
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