Question: 2 6 . A preferred stock is a hybrid security. Which is a characteristic of the price of preferred stock? Question 2 4 Answer a

26. A preferred stock is a hybrid security. Which is a characteristic of the price of preferred stock?
Question 24Answer
a.
None of the given options is correct.
b.
Preferred stock is valued as a perpetuity.
c.
Since preferred stock dividends are fixed, they are tax deductible.
d.
Because preferred stock has no maturity, the price analysis is similar to that of debt.

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