QUESTION 22 Suppose a preferred stock is expected to pay a $4.00 dividend annually and the required return is 9.5%. What is the price? O$25.77 O$35.28 O$50.91 O$42.11 QUESTION 23 You are considering the following two projects. The required rate of return is 10.75 percent for project A and The required rate of return for project B is 12 percent What is the profitability index for project A only? (Hint: Read the question carefully and underline the clues) Year 10 13 Project A (S) 36,000 21,600 18,200 22,100 ????? Profitability index OProject A profitability index is 0.8 OProject A profitability index is = 1.58 OProject A profitability index is = 1.41 OProject A profitability index is = 1.18 Project B (5) 69,900 52.600 46,100 10 No need