problem1: Pluto's is offering a preferred stock for sale. This stock will pay an annual dividend of $6. If your required return is 6 percent, how much are you willing to pay for one share of this stock ?
problem2: Preferred stock:
[A] Pays a guaranteed dividend
[B] Has a higher claim in liquidation than the common stock.
[C] Is a form of debt from a tax point of view.
[D] Is always granted voting rights.
[E] Is a form of debt from legal perspective.
problem3: The type of security which represents ownership in a firm without priority for dividends or priority in a bankruptcy is called stock.