( Preferred stock Valuation) Haney, Inc's Preferred stock is selling for $33 per share in the market and pays $3.60 annual dividend

a.What is the expected rate of return on the stock?

b.If an investor's required rate of return is 10 percent , what is the value of the stock for that investor?

c.Should the investor acquire the stock?

What is the value of the preferred stock when the dividend rate is 16 percent on a $100 par value? The appropriate discount rate for a stock of this risk level is 12 percent.