8-17B. (Preferred stock valuatim) Melissa Corporation's preferred shares are trading for $19.50 in the market and pay a $2.25 annual dividend. Assume that you, the investor, have a required rate of return of 10 percent.

a. What is the expected rate of return on the stock?

b. What is the stock's value to you, the investor?

c. Should you purchase the stock?