Preferred dividends are paid from earnings. All else being equal, is a firm more or less likely to issue preferred stock if its tax rate increases? More likely Doesn't matter Less likely Consider the case of THC Endowment: THC Endowment is an institutional investor and owns preferred stocks worth a 20% stake in Mitata Co. Mitata Co. paid out dividends of $243, 600 to THC Endowment this year. Mitata Co. had issued perpetual preferred stock with a par value of $100 and pays a(n) 11.60% annual dividend. Investors' required return on Mitata Co.'s preferred stock Is 15.54%, and the tax rate for both the companies is 30%. Based on the information given, calculate the following: Consider that Mitata Co. also issued market auction preferred stock. Which of the following is true about market auction preferred stock? Yield set on the issue after an auction on the preferred stock is the highest yield sufficient to sell all shares being offered at that auction. Yield set on the issue after an auction on the preferred stock is the lowest yield sufficient to sell all shares being offered at that auction