Problem 7-4 Preferred Stock (LO2) Preferred Products has issued preferred stock with an annual dividend of $8 that will be paid in perpetuity. a. If the discount rate is 12%, at what price should the preferred sell? (Round your answer to 2 decimal places.) Current price $ At what price should the stock sell 1 year from now? (Round your answer to 2 decimal places.) Future price c. What is the dividend yield, the capital gains yield, and the expected rate of return of the stock? (Leave no cells blank - be certain to enter "0" wherever required. Enter your answers as a whole percent.) % Dividend yield Capital gains yield Expected rate of return % % Hints References eBook & Resources Hint #1