Develop brief answers to each of the following questions; 1. Why would a company want to issue

Question:

Develop brief answers to each of the following questions;

1. Why would a company want to issue callable preferred stock?

2. What arguments can you give for treating preferred stock as debt rather than equity when carrying out financial analysis?

3. What relevance does par value or stated value have to a financial ratio, such as return on equity or debt to equity?

4. Why is treasury stock not considered an investment or an asset?

Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...