What is the value of atlantic northern

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Reference no: EM13913331

1. Atlantic Northern Inc. pays an annual dividend rate of 8.00% on its preferred stock that currently returns 10.72% and has a par value of $100.00. What is the value of Atlantic Northern Inc.'s stock?

a. $111.94

b. $89.56

c. $74.63

d. $100.00

2. Suppose, due to high inflation, interest rates rise and pull the preferred stock's yeild to 13.94%. The value of the preferred stock will _________ (increase or decrease)?

Reference no: EM13913331

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What is the value of atlantic northern : Atlantic Northern Inc. pays an annual dividend rate of 8.00% on its preferred stock that currently returns 10.72% and has a par value of $100.00. What is the value of Atlantic Northern Inc.'s stock? Suppose, due to high inflation, interest rates rise..

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