You own 200 shares of Dalton Resources preferred stock, which currently sells for $40.37 per share and pays annual dividends of $3.50 per share.

a. Your expected return is __ percent.

b. If you require a return of 9 percent, the value of the stock for you is $ __.

c. Because the expected rate of return is __ ( greater than / less than ) your required rate of return or the intrinsic value, or because the current market price is __ ( less than, greater than ) $38.89, the Dalton Resources preferred stock is __ (undervalued/overvalued) and you should __ ( sell / buy) the stock.