Problem 1 (5 x 5-25 points) Winkel Inc. has both common stock and preferred stock. For common stock: The company works with a 10 percent return on equity and retains 40 percent of its earnings for reinvestment purposes. It recently paid a dividend of $2.50 and the stock is currently selling for $30. a. Calculate the growth rate of the dividends. b. Calculate the expected return for the common stock C. If you require a 10 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 $125 per share in the capital markets. The annual dividend on the preferred stock is $7.50 per share constant). d. Calculate the expected return for preferred stock. e. If you require an 8 percent return, should you invest in preferred stock from the firm? Explain briefly why (not)