Acme corporation has preferred stock that pays $2.50 per share per year and is expected to do so indefinitely. If you require a return of 6.25% would you buy this stock if it were priced at $45?

Question 5 options:

	Yes, it is $5.00 higher than my required price
	No, I would need to buy it $5.00 more expensive than it is now
	Yes, the expected return is higher than my required return
	No, it is priced $5.00 higher than my required price