Question: Answer Question 4 (5 points) You are offered a preferred stock that pays a constant dividend of $4.40/share. How much you should pay for this

Answer Question 4 (5 points) You are offered a preferred stock that pays a constant dividend of $4.40/share. How much you should pay for this stock if your required return is 5.40%? (Round your answer to the nearest hundredth; two decimal places) Your Answer: Answer Question 5 (5 points) You are analyzing a stock that has the following returns given the various states of economy State of ProbabilityReturn Economy Recession 0.12 -3.30 Normal 0.68 4.80 Boom 0.2 12.40 What is the expected return on this stock? (Round your answer to the nearest hundredth; two decimal places) Your Answer: Answer units

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