You own 200 shares of Shapard Resources preferred stock, which currently sells for $38 per share and pays annual dividends of $4.25 per share.

a. What is your expected return?

b. If you require a return of 9 percent, given the current price, should you sell or buy more stock?

Because the expected rate of return is ____ your required rate of return or the intrinsic value of because the current market price is _____ $47.22, the Shapard Resources preferred stock is _____and you should ____ the stock