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Question seven: Kozhin planning to invest in ABC company's share, but she is not sure whether she should buy preferred stock or common stock. Preferred

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Question seven: Kozhin planning to invest in ABC company's share, but she is not sure whether she should buy preferred stock or common stock. Preferred stock is currently trading at $90 per share and has 9% dividend annually (on $100 par value) while common stock currently trading at $80 per share and just paid dividend of $5, and dividend expect grow at 3% rate for foreseeable future. What rate of return Kozhin will get if she invest in preferred stock and common stock

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