Question: Focusing on valuing stock. A manager's objective should be to maximize the value of the firm's common stock. Therefore, it is necessary to understand what

Focusing on valuing stock. A manager's objective should be to maximize the value of the firm's common stock. Therefore, it is necessary to understand what determines stock value.

1- Explain the difference between valuing for preferred stock and common stock and how to calculate for each.

2- As an investor, would you ever want to invest in preferred stock? Some analysts place preferred stock in the same category as bonds. Is this a correct assumption? Do they possess similar traits?

Please provide numerical analysis, explanation, references, and text-citation in the content. (which is highly recommended)

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