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Find new market value if nterest rate rise and pull yield

Ezzell Corporation issued perpetual preferred stock with a 10% annual dividend. The stock currently yields 8% of par, and its parvalue is $100.

a- what is the stock's value?

b- suppose interest rate rise amd pull the preferred stock'syield up to 12%, what is its new market value?

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Finance Basics: Find new market value if nterest rate rise and pull yield

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Find new market value if nterest rate rise and pull yield

Reference No:- TGS0675856

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Calculate the fair value of the sar

Q : Describe a nonmanufacturing business

Q : Determine the minimum price gleason would want

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Q : Find new market value if nterest rate rise and pull yield

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Find new market value if nterest rate rise and pull yield

Reference No:- TGS0675856

Recent Questions Asked Finance Basics

Q : Calculate the fair value of the sar

Q : Describe a nonmanufacturing business

Q : Determine the minimum price gleason would want

Q : Calculating inventory turnover ratio

Q : Find new market value if nterest rate rise and pull yield

Q : Calculate the selling price have to be in order

Q : Determine the effect of the further change

Q : What is the capital structure of the firm on the basis

Q : What would be the total amount collected at the maturity

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