show all workings. do not use excel

1.State two reasons why an investor would purchase preferred stocks over common stocks. (1 marks) MSBM's common stock paid dividend last year of $1.2 per share and is projected to pay dividends of $1.4. $1.60 and $1.80 for the next three years. After which, the dividends will grow at a rate of 3% into the future. Given that you require an 8% return on your investment. What is the maximum you are willing to pay for the stock? (4 marks)