Why does a firm's preferred stock often sell at yields below its bond's? b. a. PRIP C.

Why does a firm's preferred stock often sell at yields below its bond's?

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b. a. PRIP C. d. preferred stock generally carries a higher agency rating owners of preferred stock have a prior claim on the firm's earnings owners of preferred stock have a prior claim on the firm's assets in a liquidation corporations owning stock may exclude from income taxes most of the dividend income they receive