1. A. 89.57, B. 100.00 C. 111.96 D. 74.64

2. A. 73.920 B. 22,611 C. 22.176 D. 17,741

Consider the case of THC Endowment: THC Endowment is an institutional investor and owns preferred stocks worth a 20% stake in Weghorst Co. weghorst Co. paid out dividends of $184,800 to THC Endowment this year. Weghorst Co. had issued perpetual preferred stock with a par value of $100 and pays a(n) 8.80% annual dividend. Investors' required return on weghorst C.'s preferred stock is 11.79%, and the tax rate for both the companies is 40%. Based on the information given, calculate the following Value The current market price of Weghorst Co.'s preferred stock is: THC Endowment tax liability on its dividend income will be: Weghorst Co. also issued preferred stock whose dividends varied with the interest rate on the T-bill. Though this feature was intended to keep the price of the stock stable, the fluctuations in the Treasury yields between the dividend rate change dates led to price instability, and several institutional investors reallocated their investments from this preferred stock to other short-term investments. What kind of preferred stock did Weghorst Co. issue? O Market auction preferred stock O Adjustable rate preferred stock Lt