Write a paper including the following:

Identify the basic characteristics of preferred stock.

Value preferred stock.

Identify the basic characteristics of common stock.

Value common stock

Calculate a stock's expected rate of return

The Valuation and Characteristics of Stock

This chapter continues the introduction begun in earlier of the concepts underlying asset valuation. We are specifically concerned with valuing preferred stock and common stock. We also look at the concept of a stockholder's expected rate of return on an investment.