Question: In which way(s) is preferred stock like a bond? Multiple select question. Preferred shareholders receive a stated value if the firm liquidates, like bondholders. Some
In which way(s) is preferred stock like a bond? Multiple select question.
Preferred shareholders receive a stated value if the firm liquidates, like bondholders.
Some preferred stock has credit ratings, like bonds.
Preferred stock sometimes has a sinking fund, giving it a set maturity like bonds.
Preferred stock dividends are tax deductible for the issuer, like interest on bonds.
Preferred dividends, like interest, must be paid lest the firm be in default.
Preferred shareholders receive a stated dividend, similar to interest on a bond.
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