A preferred stock will pay a dividend of $2.75 in the upcoming year and every year thereafter; i.e., dividends are not expected to grow. You require a return of 10% on this stock. Use the constant growth DDM to calculate the intrinsic value of this preferred stock. price 30 30 < price 35 35 < price 40 40 < price Question 15 1 pts Salted Chips Company is expected to have EPS in the coming year of $2.50. The expected ROE is 12.5%. An appropriate required return on the stock is 11%. If the firm has a retention ratio of 70%, the sustainable growth rate of dividends should be: g 6.0% 6.0%