Issued preferred stock with a stated annual dividend

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Reference no: EM131013140

Preferred Stock Valuation

Several years ago, Rolen Riders issued preferred stock with a stated annual dividend of 11% of its $100 par value. Preferred stock of this type currently yields 10%. Assume dividends are paid annually.

What is the value of Rolen's preferred stock? Round your answer to the nearest cent.

Suppose interest rate levels have risen to the point where the preferred stock now yields 12%. What would be the new value of Rolen's preferred stock? Round your answer to the nearest cent.

Preferred Stock Valuation Several years ago, Rolen Riders issued preferred stock with a stated annual dividend of 11% of its $100 par value. Preferred stock of this type currently yields 10%. Assume dividends are paid annually. What is the value of Rolen's preferred stock? Round your answer to the nearest cent. $ Suppose interest rate levels have risen to the point where the preferred stock now yields 12%. What would be the new value of Rolen's preferred stock? Round your answer to the nearest cent. $

Reference no: EM131013140

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