What is the price of the firm perpetual preferred stock

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1. Janet inherited 1,000 shares of IBM that her father’s parents bought for her when she was a child. The father’s cost was $2 per share at the time of purchase and $84 per share at the time of his death. Janet sold them at $86 per share. Calculate the total amount of her capital gain.

2. Carlysle Corporation has perpetual preferred stock outstanding that pays a constant annual dividend of $1.20 at the end of each year. If investors require an 9% return on the preferred stock, what is the price of the firm's perpetual preferred stock? Round your answer to the nearest cent. Do not round intermediate calculations.

Reference no: EM131901102

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