The following problems ( a-d) are linked and all refer to the same company . This company has issued preferred shares. What price should the shares sell for if the company pays an annual dividend of $3.57 per share and the market requires an annual return of 8.5% per share? b. Market return expectations can be discovered using the Capital Asset Pricing Model (CAPM). The current relevant risk free rate is 1.5%, the expected risk premium for the stock market tcrd is 12.5%. L. If this company's beta is 1.3 then what must the required rate of return (r) for this stock actually be? I. If the CAPM rate is closest to accurate will the company's actual stock price be higher or lower than the answer you gave in part a. above? Explain Dividends were 50c per share per quarter, increasing next year by 3e per share to 53c per share each quarter. The company also said that it would continue to grow future dividends at that same rate on an annual basis into the foreseeable future. 6. If the company expects that investors will require a 15% annual return on investment what should it expect its stock price to be according to the constant dividend growth model? i. Given the information above, what is the total return for this stock if it started the investment year at $22.30 per share and ended the investment year at $26.25? li. using the CAPM rate for common shares from 9.bl above; a yield to maturity of 3.5% for debt with a tax rate of 35%; and the rate you found for preferred shares above, what is this company's weighted average cost of capital given these weights: debt at 25%, common shares at 65%, and preferred shares making up the rest? (ask for assistance if you don't have rates)