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? More likely Less likely Doesn't matter Consider the case of THC Endowment: THC Endowment is an institutional Investor and owns preferred stocks worth a 20% stake in Scorecard Corp. Scorecard Corp. pald out dividends of $197.400 to THC Endowment this year. Scorecard Corp, had issued perpetual preferred stock with a par value of $100 and pays a(n) 9.40% annual dividend. Investors' required return on Scorecard Corp's preferred stock is 12.60%, and the tax rate for both the companies is 45%. Based on the Information given, calculate the following: Value The current market price of Scorecard Corp.'s preferred stock is: THC Endowment tax liability on its dividend income will be Scorecard Corp. 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 Scorecard Corp. issue? Market auction preferred stock Adjustable rate preferred stock Investors. The majority of nonconvertible preferred stock is bought and held by All else being equal, is a form more or less likely to purchase preferred institutional hvestment if its tax rate increases? individual More likely information given, calculate the following: Value The current market price of Scorecard Corp.'s preferred stock is: THC Endowment tax liability on its dividend Income will be $89.52 Scorecard Corp. also issued preferred stock whose dividends varied W $100.00 Fest rate on the T-bill. Though this feature was intended price of the stock stable, the fluctuations in the Treasury yields betwe end rate change dates led to price instability, and sever Investors reallocated their investments from this preferred stock to ott What kind of preferred stock did Scorecard Corp, issue? $111.90 erm investments. $74.60 Value The current market price of Scorecard Corp.'s preferred stock is: THC Endowment tax liability on its dividend income will be: $26,649 Scorecard Corp. also issued preferred stock whose dividends varied w est rate on the T-bill. Though this feature was intended to price of the stock stable, the fluctuations in the Treasury yields betwee $21,319 lend rate change dates led to price instability, and several investors reallocated their investments from this preferred stock toot rm investments. $31,979 What kind of preferred stock did Scorecard Corp. issue? $88,830 Market auction preferred stock Adjustable rate preferred stock