QUESTION 6 The preferred stock of Lay's Inc. sells for $150 a share (Po $150). The company recently paid their annual preferred dividend of $7.50 per share (Do $7.50). What is the required rate of return on this preferred stock? O 5.00% 0 750% 1125% 20.00% none of the above QUESTION 7 Suppose that during the next year the interest rate on the U.S. Treasury bills is expected to be 1% and the rate of return on S&P 500 is expected to be 9% If ABC stock's beta is 1.4, the required rate of return on ABC stock next year is % 112% 1229 12 6% 13.6% none of the above