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(Preferred stockholder expected return) You own 200 shares of Shapard Resources preferred stock, which currently sells for $40 per share and pays annual dividends of

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(Preferred stockholder expected return) You own 200 shares of Shapard Resources preferred stock, which currently sells for $40 per share and pays annual dividends of $3.40 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? a. Your expected return is percent. (Round to two decimal places.)

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