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?

Answer rating: 100% (QA)

1 P referre d s tock is a type of equity se curity tha t has a hi ghe r claim o n as sets a nd divi ... View the full answer