please answer both parts

Section B: Answer ALL Questions. This section carries a total of 50 marks Question 2 (25 marks) (a) A firm recently paid a $0.60 annual dividend. The dividend is expected to increase by 12 percent in each of the next four years. In the fourth year, the stock price is expected to be $110. If the required return for this stock is 14.5 percent, what is its current value? (20 marks) (b) Explain the differences between common stock and preferred stock