
CFIN
5th Edition
ISBN: 9781305661639
Author: Scott Besley, Eugene Brigham
Publisher: Cengage Learning
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Chapter 7, Problem 3PROB
Summary Introduction
The
Preferred stock as the name suggest has higher preference over common stock. Preferred stockholders get annual dividends like bond holders and have higher priority. Value of the preferred stock also depends on the dividends paid and the required rate of return on the same.
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