Foundations of Financial Management
Foundations of Financial Management
16th Edition
ISBN: 9781259277160
Author: Stanley B. Block, Geoffrey A. Hirt, Bartley Danielsen
Publisher: McGraw-Hill Education
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Chapter 17, Problem 12DQ
Summary Introduction

To explain: The advantage of the floating rate preferred stock to a risk-averse investor.

Introduction:

Floating rate preferred stock:

These are preferred stocks that have varying dividend payouts from time to time. The dividend rate usually remains the same as the interest rate on treasury security.

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