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    Valuation of preferred stock Hybrid

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    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
    https://brainmass.com/business/valuing-securities/valuation-preferred-stock-148501

    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

    $2.49

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