(Preferred stockholder expected return) You own 150 shares of Dalton Resources preferredstock, which currently sells for $ 35.85 per share and pays annual dividends of $ 4.50 per share.

a. What is your expectedreturn?

b. If you require a return of 9 percent, given the currentprice, should you sell or buy morestock?

Because the expected rate of return is (greater than/ lesser than )your required rate of return or the intrinsicvalue, or because the current market price is (great than/ lesser than) $50.00, the Dalton Resources preferred stock is (overvalued/ undervalued) and you should (sell /buy)

the stock.(Select from thedrop-down menus.)