please use the formulas from the formula sheet

Investment Return: Geometric Return / Cumulatlve Annual Growth Rate (CAGR): CAGR=[BeginValueEndValve]AnnualGrowthRate(CAGR):1 Portfolio Return: PortfolieExpectedRateofReturmE(rpmanis)=[W1E(r1)]+[W2E(r2)]+[W3E(r3)]++[WnE(rn)]] Capital Asset Pricing Model (CAPM): E(rAssetj)=rf+Assetj[E(rMarket)rf] Bond Valuation / Pricing: Fisher Effect for Interest Rates: rnominal=rreal+rinfiation Discounted Dividend Stock Valuation: Dividend growth rate: g=bROE Preferred Stock Valuation: Valueof=MarketsRequiredYieldonPreferredStockAnnualPreferredStockDividend 29) Preferred stock for Company Massive pays a $1.20 annual dividend. You estimate a required rate of return on Company Massive's preferred stock of 4.25%. a) What do you estimate to be the current share price? [6 pts] b) You observe Company Massive's preferred stock selling for $20.50. Should you buy the stock? Why? [2 pts]