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    Toyota Stock Valuation of Nonmaturing Preferred Stock

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    Use Excel for solution.

    Stock Valuation
    Suppose Toyota has nonmaturing (perpetual) preferred stock outstanding
    that pays a $1.00 quarterly dividend and has a required return of 12% APR
    (3% per quarter). What is the stock worth?

    If you use the spreadsheet method shown in the workshop, assume "perpetual" means 63 years (due to a limitation in Excel).
    If you use the Excel formula, assume payments are made at the end of the period.

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    Solution Summary

    Toyota stock valuation of non-maturing preferred stock is provided. Excel formula is used to determined the payments.