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( Preferred stockholder expected return ) You own 200 shares of Shapard Resources preferred stock, which currently sells for $43 per share and pays annual
(Preferred stockholder expected return) You own 200 shares of Shapard Resources preferred stock, which currently sells for $43 per share and pays annual dividends of $3.75 per share.
a) What is your expected return?\
b) If you require a return of 8 percent, given the current price, should you sell or buy more stock?
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