problem1: Fee Founders has perpetual preferred stock outstanding that sells for $38.00 a share & pays a dividend of $3.00 at the end of each year. find out the required rate of return? Give your answer to the nearest hundredth.
problem2: Ezzell Corporation issued perpetual preferred stock with an 11% yearly dividend. The stock currently yields 9 percent, and its par value is 100 dollar.
[A] find out the stock's value? Give your answer to the nearest hundredth.
[B] Assume interest rates increase and pull the preferred stock's yield up to 11%. Find its new market value? Give your answer to the nearest hundredth.