1.You are given with the following information statements of a public firm BB in the fast-food industry concurrently. (Notice that all negative numbers are parenthesized). The firm has issued 12 million shares of common stock with current market price as $45/per share, the expected dividend is $4.90/per share with 3.5% growth rate, 300,000 shares of preferred stocks with promised preferred dividend and preferred stock price as $2.20/per share and $22.5/per share, respectively. The firm also has a $6 million loan with annual interest rate as 5.6% for 5 years with market price as $750 with face value as $1000. The corporate income tax rate is 20%. Answer the following questions:

a) If using the market prices for assessment on rates of return, what is the rate of return of the common stock of BB? What is the rate of return for their preferred stocks?