Which Is a Characteristic of the Price of Preferred Stock

question 47

Multiple Choice

Which is a characteristic of the price of preferred stock?

• A)Since preferred stock dividends are fixed, they are tax-deductible.
• B)Because preferred stock has no maturity, the price analysis is similar to that of debt.
• C)Preferred stock is valued as a perpetuity.
• D)None of these options

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Definitions:

Primary Component

The most essential or chief element that plays a central role in the system or structure it is part of.