Hello, could you please explain to me how to work through this problem? Thank you.

(Preferred stockholder expected return) You own 252 shares of Global Services' preferred stock with a

par value of $25, which currently sells for 72.48% of par value and pays annual dividend of $1.19 per

share.

a. What is your expected return?

b. If you require a 10% return, given the current price, would you be interested in selling or

buying more stock?