a) You own 250 preferred shares of Moon enterprises, which currently sell for $210. Last year you received a total of $53 in dividends. What is the rate of return? (3 marks)

b) XYZ Inc paid $7.24 in dividends per share last year. The firms projected growth rate is 9% and is expected to remain so in the near future. If the rate of return on similar stocks is 12%, what is the value of the stock? (3 marks)