Haney, Inc.'s preferred stock is selling for $23.25 per share in the market and pays a $2.50 annual dividend.

a. The expected rate of return on the stock is %. (Round to two decimal places.)

b. If an investor's required rate of return is 9 percent, the value of the stock for that investor is$ (Round to the nearest cent.)

c. Because the expected rate of return is (greater than or less than) the investor's required rate of return or because the current market price is (greater than or less than) $27.78, the Haney, Inc.'s preferred stock is ( undervalued or overvalued) and the investor should (sell or buy) the stock