10. Problem 9.08 (Preferred Stock Valuation) eBook Earley Corporation issued perpetual preferred stock with an 11% annual dividend. The stock currently yields 10%, and its par value is $100. Round...

Extracted text: 10. Problem 9.08 (Preferred Stock Valuation) eBook Earley Corporation issued perpetual preferred stock with an 11% annual dividend. The stock currently yields 10%, and its par value is $100. Round your answers to the nearest cent. a. What is the stock's value? b. Suppose interest rates rise and pull the preferred stock's yield up to 15%. What is its new market value? 2$