2. Kassidy's Kabob House has preferred stock outstanding that pays a dividend of $5 at the end of each year. The preferred sells for $50 a share. What is the stock's required rate of return? Assume the market is in equilibrium with the required return equal to the expected return. I figured out the required rate of return is 10% but there is an addition question which is to explain the implications of your findings I had no idea how to answer that, thanks