Which Is a Characteristic of the Price of Preferred Stock

question 28

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.

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Definitions:

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A statistical approach for determining the relationship between a dependent variable and one or more independent variables.

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