Homework: HW 5 (Preferred stock valuation) Haney, Inc's preferred stock is selling for $20 25 per share in the market and pays a $3.75 annual dividend a. What is the expected rate of return on the stock? b. If an investor's required rate of return is 12 percent, what is the value of the stock for that investor? c. Should the investor acquire the stock? a. The expected rate of return on the stock is 3% (Round to two decimal places.)