(8 pts) 6. You are considering the purchase of the common stock of Herro Corporation. Given the following information, explain whether or not if you would buy the stock. Support your conclusions with computations. The current market price of Herro is $100 per share. The one-year target estimated price is $122 per share. The dividend per share is $2.00. The beta for Herro is 1.60. The risk free rate is 2.0%. The market risk premium is 6.0%. (8 pts) 7. Determine the value of a share of preferred stock when the dividend rate is 8 percent and the par value is $75. The appropriate discount rate for a stock of this risk level is 10 percent. Why is the price now different from the par value