Question: Why is some preferred stock a perpetuity? A : It involves multiple cash flow streams in present value. B : It involves a future value
Why is some preferred stock a perpetuity?
- A
- :
- It involves multiple cash flow streams in present value.
- B
- :
- It involves a future value factor similar to future value.
- C
- :
- It involves an interest rate that fluctuates with the market.
- D
- :
- It involves a constant cash payment to shareholders that continue forever.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
