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

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Accounting

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North Pole Cruise Lines issued preferred stock many years ago. It carries a fixed dividend of $7 per share. With the passage of time, yields have changed from the original 11 percent to 9 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.) Original issue price b. What is the current value of this preferred stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Current value 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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