Joe's Fisheries has perpetual preferred stock outstanding that sells for $46 a share and pays a dividend of $4.14 at the end of each year. What is the expected rate of return?

a.8.3%

b.11.7%

c.9.0%

d.9.9%

e.11.1%

What would be the expected rate of return on a perpetual preferred stock with a $100 par value, a stated dividend of 11 percent of par, and a current market price of $80?

a.13.75%

b.11.00%

c.8.80%

d.12.88%

e.12.14%