(Preferred stockholder expected return?) You own 150 shares of Dalton Resources preferred? stock, which currently sells for $ 35.85 per share and pays annual dividends of $ 4.50 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 (greater than/ lesser than )your required rate of return or the intrinsic? value, or because the current market price is (great than/ lesser than) $50.00?, the Dalton Resources preferred stock is (overvalued/ undervalued) and you should (sell /buy) the stock. ?(Select from the? drop-down menus.)