Question 5 (20 Marks) Necktal Inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $4.00 per share. Required 5.1. i the required return on this preferred stock is 6.5%, then at what price should the stock sell (5 marks) 5.2. What claims do preferred stockholders have with respect to the distribution of earnings (Dividends and Assets) (3 marks) 5.3. Explain the cumulative feature of preferred stock. What is the purpose of a call feature in Preferred stock issue? (5 marks) 5.4. If a preferred stock pays a dividend of $1.00 per quarter and it sells for $57.50 per share. What is It's effective annual (not nominal) rate of return? (7 marks)