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Explain why preferred stock is sometimes considered a hybrid

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Explain why preferred stock is sometimes considered a hybrid security (i.e part stock/part bond). Also explain if the equation used to value preferred stock is more like for bonds previously or more like the constant growth model for common equity.

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Preferred stock is considered a hybrid security because it pays a fixed amount of dividend that you will keep receiving as long as you are still holding the stocks, and you will always get the fix amount of dividend payments. Type of bonds that can be considered as a hybrid security is convertible bonds.
Preferred stock is very similar to ...

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The expert explains why preferred stock is sometimes considered a hybrid.

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