$39.$

$($Preferred stockholder expected return$)$ You own $150$ shares of Budd Corporation preferred stock at a market price of $$21$ per share. Budd pays dividends of $$1\mathrm{.}50.$ What is your expected rate of return? If you have a required rate of return of $9$ percent, should you sell your shares or buy more of the stock?

a$.$ Your expected rate of return is

$\%.($Round to two decimal places.$)$

b$.$ If you have a required rate of return of $9$ percent, the value of the stock for you is $ $($Round to the nearest cent.$)$

Because the expected rate of return is your required rate of return or because the current market price is $$16\mathrm{.}67,$ the Budd Corporation preferred stock is drop$-$down menus.$)$