Bulgari Jewelers has issued bonds, common stock, and preferred stock. The YTM on the bonds is 14% and the expected annual return on the common stock is 23%. Which of the following assertions about the expected annual return on the preferred stock issued by Bulgari Jewelers is most likely to be true?

		The expected annual return on the preferred stock is 11%
		The expected annual return on the preferred stock is 14%
		The expected annual return on the preferred stock is 23%
		The expected annual return on the preferred stock is 26%
		The expected annual return on the preferred stock is 18%