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

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

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