Jones Design wishes to estimate the value of its outstanding preferred stock. The preferred stock issue has an $120 par value and pays an annual dividend of $6.20 per share. Similar-risk preferred stocks are currently earning a 7.4% annual rate of return.

a) what is the market value of the outstanding preferred stock? (round to the nearest cent)

b) if the required return on similar-risk preferred stock has risen to 9.0% the value of the stock will be $______ per share (round to the nearest cent)

c) if an investor purchased the prefeered stock at the value calculated in part a and sells the stock when the required return on similar risk preferred stocks has risen to 9.0% the gain or loss is $ ___ per share