(Answered) Rolen riders issued preferred stock with a stated dividend

Finance

Rolen Riders issued preferred stock with a stated dividend of 10% of par. Preferred stock of this type currently yields 8%, and the par value is 100. Assume dividends are paid annually.

A). What is the value of Rolen's prefferred stock?

B). Suppose interest rate levels rise to the point where the prefrred stock now yields 12% What would be the value of Rolen's preferred stock?

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