Question $1,$ Problem $8-4$

$($similar to$)$

HW Score: $0\%,0$ of $3$ points

Part $1$ of $3$

Points: $0$ of $1$

$($Preferred stock valuation$)$ Haney, Inc.$\text{'}$s preferred stock is selling for $$22\mathrm{.}75$ per share in the market and pays a $$2\mathrm{.}50$ annual dividend.

a$.$ What is the expected rate of return on the stock?

b$.$ If an investor's required rate of return is $12$ percent, what is the value of the stock for that investor?

c$.$ Should the investor acquire the stock?