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you have finally saved $5,000 and are ready to make your firstinvestment. You have the following alternatives for the investingthat money:Dan inc preferred stock paying a dividend of $3.50 and sellingfor $41 per share. Dan Electric Co common stock selling for $19.the stock recently paid a $3.09 dividend and the firm’s earningsper share have increased from $1.90( to the most recent dividendpayment) in 5 years. The firm expects to grow at the same rate forthe foreseeable future.Your required rate of return for these investments is 10% forthe preferred stock and 22% for the common stock. Using thisinformation, answer these questions:1- Calculate the value of each investment based on yourrequired rate of return. (**hint: calculate the growth rate of earrings first)2- which investment would you select? why?