Explore BrainMass

Explore BrainMass

    Valuation of preferred stock Hybrid

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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

    Solution Preview

    The Advantages of preferred stock is :
    Risk less Leverage advantage
    Dividend postponability
    Fixed ...

    Solution Summary

    The answer tells about the concept of valuation of preferred stock