j CORSAIR 1" Question 2 (5 points) 2 Rolen Riders Company has preferred stock and common stock. It pays a fixed 8% annual dividend on its preferred stock with par value of $50 per share. It has just paid $2 dividend per share on its common stock, and the dividend on the common stock is expected to grow at 5% per indefinitely. The risk free interest rate is currently 4%. year 7 (a) (2 points) The preferred stock of Rolen Riders currently trades at $40 per share. What risk premium is required by the investors? (b) (3 points) The common stock of Rolen Riders currently trades at $30 per share. What risk premium is required by the investors? (Extra writing space on the next two pages) ris premium : expected rctnrn-risk Fel rate