Preferred stock is said to be a hybrid between common stock and a bond, as the dividends must be paid before any dividends are paid to common stockholders.
How then does one approach valuing preferred stock?© BrainMass Inc. brainmass.com March 4, 2021, 8:09 pm ad1c9bdddf
The Advantages of preferred stock is :
Risk less Leverage advantage
The answer tells about the concept of valuation of preferred stock