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(Preferred stock expected return) You are planning to purchase 200 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 200 shares of preferred stock and must choose between Stock A and Stock B. Stock A pays an annual dividend of $5.25 and is currently selling for $38. Stock B pays an annual dividend of $5.05 and is selling for $40. If your required return is 13.23 percent, which stock should you choose? What is the expected return of Stock A? 96 (Round to two decimal places.) What is the expected return of Stock B? % (Round to two decimal places.) If your required return is 13.23 percent, you should choose | . (Select from the drop-down menu.) Stock B Stock A None

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