Expected return on common and preferred stock
Thurber common stock just paid a $1.76 divided and its current price is $ 22 per share. The common divided is expected to grow at a constant rate of 5% per year. Thurber preferred stock pays a perpetual $8.98 annual dividend and sells for $98.25. The preferred stock price is expected to remain constant in the foreseeable future. What it is the expected total return? Expected divided yield and expected capital gains yield on Thurber common and preferred stock.