Please answer 2) The current price of common stock is $40.00. Last year, it paid $2.00 in dividends per share. The dividends are expected to grow at a rate of 4% per year. Based on your risk assessment of this common stock, your required rate of return is 10%. Find the expected return on the common stock .

3) Find the expected rate of return on a preferred stock, which pays $4.00 dividends per share. Your required rate of return is 8.00%. The current market price is 25. Find the expected rate of return.

a) 8.005

b) 15.25%

c) 16.00%

d) 20.00%

e) none of the above

Question Completion Status: QUESTION 1 10 points saved Common stockholders as owners of a corporation have unlimited liability True O False QUESTION 2 10 points Save Answ The current price of common stock is $40.00. Last year, it paid $2.00 in dividends per share. The dividends are expected to grow at a rate of 4% per year. Based on your risk assessment of this common stock your required rate of return is 10% Find the expected retum on the common stock O A 9.00% OB 920% OC 8.55% O 0.8.90% O E None of the above QUESTION 3 10 points Save Answer Find the expected rate of return on a preferred stock which pays $400 dividends per share Your required rate of return is 8.00% The current market price is 25. Find the expected rale of return Click Save and submit to save and submit. Click Save all answers to save alates Save All Answers Close Window Save and Submit allow SOM ex W