Tiffani Jewelers has issued bonds, common stock, and preferred stock. The YTM on the bonds is 11% and the expected annual return on the common stock is 27%. Which of the assertions about the expected annual return on the preferred stock issued by Tiffani Jewelers is most likely to be true?

- The expected annual return on the preferred stock is 27%

- The expected annual return on the preferred stock is 11%

- The expected annual return on the preferred stock is 30%

- The expected annual return on the preferred stock is 19%

- The expected annual return on the preferred stock is 8%