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 69, while TAYC Capital pays an annual dividend of $ 2 44 If your required return is 12 percent, what value would you assign to the stocks ...

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You are considering an investment in one of two preferred stocks, TCF Capital or TAYC Capital Trust.

Question:

You are considering an investment in one of two preferred stocks, TCF Capital or TAYC Capital Trust. TCF Capital pays an annual of $ 2.69, while TAYC Capital pays an annual of $ 2.44. If your required return is 12 percent, what value would you assign to the stocks?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...