Question: Please answer a. b. c. d. and e. of this problem and show all work. Thank you! Shore Lots Inc. has both common stock and

 Please answer a. b. c. d. and e. of this problem

Please answer a. b. c. d. and e. of this problem and show all work. Thank you!

Shore Lots Inc. has both common stock and preferred stock. For common stock: The company works with a 8 percent return on equity and retains 35 percent of its earnings for reinvestment purposes. It recently paid a dividend of $3.50 and the stock is currently selling for $47. a. Calculate the growth rate of the dividends. b. Calculate the expected return for the common stock c. If you require a 12 percent return, should you invest in common stock from the firm? Explain briefly why (not). For preferred stock: The company's preferred stock sells for $58.00 per share in the capital markets. The annual dividend on the preferred stock is $3.25 per share (constant). d. Calculate the expected return for preferred stock. e. If you require an 5 percent return, should you invest in preferred stock from the firm? Explain briefly why (not)

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