QUESTION 7 What would be the expected rate of retum on a perpetual preferred stock with a $100 par value, a stated dividend of 13 percent of par, and a current market price of 5702 a 13.00 Ob 21.255 OC 21.06% Od 18.57% Oe 9.105 QUESTIONS Humil Mining Company's reserves are being depleted, so its sales are falling. As a result, the company's earnings and dividends are declining at the constant rate of 2 percent per year. If Do-$3.50 and rs = 11%, what is the value of Hamil Mining's stock? a $26.92 b. $39.67 $26.38 O d. $38.11 e. $38.89