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What should be the prices of the following preferred stocks

What should be the prices of the following preferred stocks if comparable securities yield 7 percent? Why are the valuations different?
   1. MN Inc., $8 preferred ($100 par)
   2. CH Inc., $8 preferred ($100 par) with mandatory retirement after 20 years


TUTORIAL PREVIEW

CH Inc., $8 preferred (100 par) with mandatory retirement after 20 years
P0 = $8 x [1- (1+0.07)-20] / 0.07 + $100 / (1+0.07)20
File name What should be the prices.docx  File type: docx  PRICE: $4