(Preferred Stock Valuation) Greevy's preferred stock is selling for $35 in the market and pays a S4 annual dividend What is the expected rate of return of the stock? b If an investor's required tate of return is 10 percent, what is the value of the stock to the investor? Should the investor acquire the stock(Common Stock Valuation The common stock of KPD paid Si in dividends last year Dividends are expected to grow at an 8 percent annual rate for an indefinite number of years If KPD's current market price is $25, what is the stock's expected rate of return? c a b. If your required rate of retum is 11 percent, what is the value of the stock to you? Should you make the investment? C