Big Oil, Inc. has a preferred stock outstanding that pays a $8 annual dividend. If investors’ required rate of return is 10 percent, what is the market value of the shares? Round your answer to the nearest cent. $   If the required return declines to 8 percent, what is the change in the price of the stock? Round your answer to the nearest cent. The price  by $

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
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Big Oil, Inc. has a preferred stock outstanding that pays a $8 annual dividend. If investors’ required rate of return is 10 percent, what is the market value of the shares? Round your answer to the nearest cent.

$  

If the required return declines to 8 percent, what is the change in the price of the stock? Round your answer to the nearest cent.

The price  by $   .

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