Book value is equal to:

Assets- (Liabilities + Equity)

Assets - (Liabilities/ # of shares outstanding)

Net worth

Assets/# of shares outstanding

Cash payments from preferred stock are:

discounted using the same valuation model as for bonds

discounted as a perpetuity

finite like bonds reflecting the liability nature of preferred stock

valued by taking the future value of all cash flows

If the yield-to-maturity of a bond is more than the coupon rate, the bond will sell at:

par value

a premium

a discount

The discounted cash flow model for bonds:

computes the future value of all cash flows

uses the coupon interest rate to discount bonds

uses the required rate of return to discount all promised bond cash flows

is the present value of all coupon dividends

its call price