You are considering an investment in one of two preferred stocks, TCF Capital or TAYC Capital...
You are considering an investment in one of two preferred stocks, TCF Capital or TAYC Capital Trust. TCF Capital pays an annual dividend of $ 2.19 $2.19, while TAYC Capital pays an annual dividend of $ 1.94 $1.94. If your required return is 11 11 percent, what value would you assign to the stocks? The value of the TCF Capital preferred stock is $ nothing per share. (Round to the nearest cent.) The value of the TAYC Capital preferred stock is $ nothing per share.
Homework Answers
Price of the share of TCF IS =Dividend paid / required rate of return
=2.19$ / 11%=$ 19.91
Price of the share of TAYC IS =Dividend paid / required rate of return
=1.94$ / 11%=$ 17.64
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