1. Acura Labs, Inc., has an outstanding issue of preferred stock with a $50 par value and an 8% annual dividend rate.Dividends are paid quarterly.

A. What is the dollar amount of each quarterly dividend for Acura Labs?

B. Calculate the value of this preferred stock assuming a required rate of return of 6% per year, compounded quarterly.

C. Assume that the current market price for this preferred stock is $65 per share.Calculate the annual expected return based on the market price.

D. If the preferred stock is noncumulative and the Board of Directors has passed the preferred dividend for the last three quarters, how much must be paid to each preferred stockholder in the current quarter before dividends are paid to common stockholders?