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Preferred stock valuation
Question 1; You are considering an investment in one of two preferred stocks, TCF Capital or TAYC Capital Trust. TCF Capital pays an annual dividend of $2.25, while TAYC Capital pays an annual dividend of $2.01. If your required return is 13 percent, what value would you assign to the stocks?
The value of the TCF Capital preferred stock is $__per share.(Round to the nearest cent.)
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