Preferred stock valuation Jones Design wishes to estimate the value of its outstanding preferred stock. The preferred issue has a par value of ​$100 and pays an annual dividend of ​$5.40 per share. ​ Similar-risk preferred stocks are currently earning an annual rate of return of 10.4​%.

a) What is the market value of the outstanding preferred​ stock?
b) If an investor purchases the preferred stock at the value calculated in part a​, how much does she gain or lose per share if she sells the stock when the required return on​ similar-risk preferred stocks has risen to 12.2​%?