Preferred stock is a hybrid security, because it has some characteristics typical of debt and others typical of equity. The following table lists various

characteristics of preferred stock. Determine which of these characteristics is consistent with debt and which is consistent with equity.

Consider the case of Turnbull Enterprises:

At the present time, Turnbull Enterprises does not have any preferred stock outstanding but is looking to include preferred stock in its capital structure

in the future. Turnbull has found some institutional investors that are willing to purchase its preferred stock issue provided that it pays a perpetual

dividend of $$10$ per share. If the investors pay $$92\mathrm{.}25$ per share for their investment, then Turnbull's cost of preferred stock $($rounded to four decimal

places$)$ will be