7. A preferred stock that pays an annual dividend of $20, has a par value of $100, And has a required rate of return of 5%, will be valued at: a) $100 b) $200 c) $300 c) $300 d) $400 8. PDQ Corp. has sales of $3,000,000; the firm's cost of goods sold is $1,425,000; and its total operating expenses are $700,000. The firm's interest expense is $230,000, and the corporate tax rate is 40%. The firm paid dividends to preferred stockholders of $30,000, and the firm distributed $60,000 in dividend payments to common stockholders. What is PDQ's Addition to Retained Earnings?" a) $297,000 b) $327,000 c) $387,000 d) $477,000