(Preferred stockholder expected return) You own 100 shares of Budd Corporation preferred stock at a market price of 20 per share. Budd pays dividends of $3.00. What is your expected rate ofreturn? If you have a required rate of return of 14 percent, should you sell your shares or buy more of the stock?

a. Your expected rate of return is

b. If you have a required rate of return of 14 percent, the value of the stock for you is? the Budd Corporation preferred stock is? and you should buy or sell the stock.