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(Preferred stock expected return) You are planning to purchase 100 shares of preferred stock and must choose between Stock A and Stock B. Stock A

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(Preferred stock expected return) You are planning to purchase 100 shares of preferred stock and must choose between Stock A and Stock B. Stock A pays an annual dividend of $4.75 and is currently selling for $38. Stock B pays an annual dividend of $4.55 and is selling for $40. If your required return is 11.94 percent, which stock should you choose? . What is the expected return of Stock A? % (Round to two decimal places.) What is the expected return of Stock B? 1% (Round to two decimal places.) If your required return is 11.94 percent, you should choose (Select from the drop-down menu.)

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