Complete the following problem sets in Ch. 5 & 7 of Corporate Financial Management and show all steps:
· Ch. 5: Problems A1, A10, A12, A14, B16, B18, & B20
· Ch. 7: Problem C1
A14. (Stock valuation) Suppose Toyota has nonmaturing (perpetual) preferred stock outstanding a $1.00 quarterly dividend and has a required return of 12% APR (3% per quarter). What is the stock worth?