Q1. (Choices) A. institutional, B. individual

Q3. (Choices) A. $74.62, B. $89.54, C. $100, D.$111.93

Q4. (Choices) A. $29,635, B.$19,575, C.$24,696, D.$82,320

The majority of nonconvertible preferred stock is bought and held by investors. All else being equal, is a firm more or less likely to purchase preferred stock as an investment if its tax rate increases? Less likely Doesn't matter O More likely 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 $235,200 to THC Endowment this year. Weghorst Co. had issued perpetual preferred stock with a par value of $100 and pays a(n) 11.20% annual dividend. Investors' required return on Weghorst Co.'s preferred stock is 15.01%, and the tax rate for both the companies is 35%. 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: Consider that Weghorst Co. also issued market auction preferred stock. Which of the following is true about market auction preferred stock? O 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. O 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 tion