North Pole Cruise Lines issued preferred stock many years ago. It carries a fixed dividend of...

North Pole Cruise Lines issued preferred stock many years ago. It carries a fixed dividend of $10 per share. With the passage of time, yields have soared from the original 9 percent to 8 percent (yield is the same as required rate of return). a. What was the original issue price? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What is the current value of this preferred stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. If the yield on the Standard & Poor’s Preferred Stock Index declines, how will the price of the preferred stock be affected? The price of preferred stock will increase. The price of preferred stock will decrease.

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jeff jeffy answered 5 months ago

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