Question: Dillon Mechanical Ltd s preferred shares have a par value of
Dillon Mechanical Ltd.'s preferred shares have a par value of $50, a dividend rate of 7 percent, and trade at a price of $70. Sherwood Inc.'s preferred shares have a par value of $60, a dividend rate of 4 percent, and trade at a price of $45. Which company’s preferred stock is riskier?
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