10. Preferred stock of STU Corporation pays an annual dividend at the rate of 5.25% per share. If STU Corporations preferred shares are issued at a $25 par value per share, and comparable yields are at 7.50%, what should the current price be of the preferred stock? Would you buy this preferred stock if it is actually trading at $19.375 per share? Why or why not? (Please show your work to receive credit for this problem)